Bitcoin’s price risks slipping as low as $50,000 on the back of the Federal Reserve’s meeting this week, warns Markus Levin, co-founder of the blockchain company XYO.
On December 10, the US central bank is expected to announce whether or not it will cut interest rates. A rate will inject much-needed liquidity into markets and is usually seen as a boon to riskier assets like cryptocurrencies.
But even if the Fed cuts interest rates, market signals still suggest that Bitcoin is at risk of crashing even lower than its $89,700 price.
“Fear and greed indices have moved into extreme fear. All of this supports deeper corrective action,” Levin told DL News.
The comments come as traders are looking for signs that the market will recover at the end of the year despite uncertainty caused by US President Donald Trump’s trade war, actual wars, political upheaval, and a plethora of other macroeconomic factors.
Magnets at $78,000, $82,000
Levin told DL News that the current structure of the Bitcoin market “leaves clear magnets,” price points at which demand could negate the effect of price drops, at the $82,000 mark, and then below at $78,000.
But he warned that if those levels are tested without sparking a rise in demand, “a move into the low-$70,000s is entirely possible.”
“A brief dip under $50,000 cannot be ruled out in a thin liquidity environment,” Levin said.
Looking at Bitcoin options — a kind of trade where investors essentially bet on where the price will end up — traders don’t seem as bearish, at least this side of 2026. For options that expire on December 26, the biggest put position is at $85,000, according to data from basedmoney. Puts are bearish bets that the price will go down.
Georgii Verbitskii, founder of crypto investment platform TYMIO, told DL News that Bitcoin remains in a borderline state.
“Structurally, the uptrend is still broken,” he said. “Until Bitcoin establishes a firm hold above $100,000, it’s too early to rule out deeper pullbacks. Whether we revisit $70,000 depends entirely on that level.”
Verbitskii said that should Bitcoin fail to hold steady above the $100,000 mark, “another sweep of lower support remains possible.”
“Once Bitcoin firmly stabilises above this point, the likelihood of revisiting levels under $70,000 becomes much lower,” he said. “But we’re not there yet, so this scenario can’t be completely ruled out.”
The experts also warned that a rise in global inflation rates and outflows from Bitcoin exchange-traded funds were also applying downward pressure on crypto markets.
The usually bearish Bloomberg Intelligence strategist Mike McGlone also said further Bitcoin price hiccups could be on the way in the last weeks of the year. He forecasted that Bitcoin will be trading below $84,000 by the end of 2025.
