- Bitcoin’s crash to $96K is no ordinary event – it may be just the beginning of what 2025 has in store.
- As investors scramble for safety, will Bitcoin emerge as a haven, or will it retreat?
The broader economic picture is under intense scrutiny once again. Bitcoin [BTC] tumbled from $102K to $96K in just 24 hours – a drop that was far from coincidental.
Instead, it was triggered by a ‘better-than-expected’ U.S. economic report, leaving market makers split: Was this just another ‘speculative’ stunt to shake up the market or does it hint at a looming Bitcoin ‘crash’ in 2025?
Investors flee to safety as fear of Bitcoin crash mounts
Another day, another Bitcoin crash. The line between the two is blurring more each day. Does the report on the 18th of December ring a bell? Just as BTC hit $108K, the Fed’s cautious stance on interest rates sparked a massive sell-off.
The result? Bitcoin tumbled to $91K in under two weeks, and the U.S. 10-year Treasury Yield surged to a six-month high of 4.60%.
Now, a similar pattern is unfolding, and it’s only intensifying. The benchmark 10-year Treasury yield has surged to an eight-month-high, climbing 7.5 basis points to 4.685% – its highest level since April.
Source: Trading Economics
No doubt, investors are scrambling to get out of riskier assets and flocking to traditional safe havens like U.S. bonds. The 5% drop in Bitcoin wasn’t limited to the crypto market; it coincided with a significant sell-off across the market, wiping out over $625 billion in U.S. stocks today.
Traders are clearly on edge, acting with “extreme” caution. Even before the Fed signals a rate hike, investors are already betting on a Bitcoin crash, scrambling to protect their profits.
This brings us to an interesting point: Is this Bitcoin crash just speculation, or is something much bigger at play?
It might just be the start of what 2025 has in store
Looking closely, the data shows a strong U.S. economy. November’s JOLTS job openings rose by 259,000 to a six-month high of 8.098 million, well above the expected drop to 7.740 million.
Plus, December’s ISM services index climbed to 54.1, surpassing the forecast of 53.5.
What does this mean for the future? The Fed is likely to cut interest rates only once, not twice. With inflation near the 2% target, there’s no immediate need for drastic cuts to spur demand.
Read Bitcoin’s [BTC] Price Prediction 2025–2026
This could put Bitcoin’s ‘safe-haven’ narrative to the ultimate test in 2025. Higher interest rates typically make U.S. bonds more appealing, as shown by the chart above.
As capital moves away from riskier assets like Bitcoin, it may face tough competition in the coming year.
Given this shift, the idea of a Bitcoin crash is no longer just social-media chatter – it’s becoming a real possibility.
To stay ahead, closely following the U.S. economic calendar is more important than ever. The idea is simple: protect your portfolio before the next dip hits.
