Crypto markets bleed $182bn amidst Fed uncertainty

Market Overview - Crypto markets experienced a significant decline of nearly 5%, resulting in a loss of approximately $182 billion in total market value, with Bitcoin dropping to $105,540 [1] - The current market value has slightly recovered to $3.6 trillion, with Bitcoin now valued at $107,149 [1] Investor Sentiment - The decline in the crypto market has dampened investor expectations for looser financial conditions in the short term, as indicated by Simon Peters from eToro [2] - Prior to the recent interest rate decision, the probability of a rate cut at the December FOMC meeting was as high as 96%, but this dropped to less than 70% following the press conference [2] Market Activity - The dramatic drop led to the liquidation of over $1 billion across more than 303,000 positions [3] - Traders on Bitcoin exchange-traded funds sold $800 million worth of assets last week, contributing to the market's downturn [3] Future Outlook - There are indications of potential bullishness in the market, with key employment data expected to be released soon, which could influence rate cut expectations and restore risk-on sentiment [4] - Analysts from Fundstrat and the London Crypto Club anticipate a surge in liquidity that could propel Bitcoin to retest record highs by year-end, driven by the growing stablecoin market [4][5]