Bitcoin Plummets,Fed Warning Fuels New Crash Fears

The price of bitcoin and the crypto market plunged sharply again,sparking new concerns about a potential crash.

Bitcoin is now trading around $86,000 per coin,down from $126,000 in October. This drop brings bitcoin too its lowest level as April, when trade tariffs announced by former US President Donald Trump triggered market panic.

Market sentiment has become increasingly negative following concerns about potential large-scale sales totaling up to $1 trillion in the crypto market.

also read: Bitcoin Price Drops Again to Lowest Level – What’s the Reason?

Market players are now anticipating the federal Reserve (The Fed) response after delayed employment data put pressure on expectations for interest rate cuts in December. Previously,these cuts were expected to support risky assets like bitcoin.

New Warning from Industry Players

According to Forbes on Friday, November 21, 2025, Sara Devereux, head of Vanguard’s bond business, warned that the Federal Reserve will likely only cut interest rates one or two more times.

This contrasts with market expectations of up to four cuts next year.

“Too many interest rate cuts have been priced in by the market at the moment,” Devereux stated.