Bitcoin Braces for Huge Fed Price Shock After Sudden Policy Flip

Bitcoin has seen a mild recovery after a sharp sell-off this week, but market volatility is far from over as a sudden shift in Federal Reserve expectations signals a potential “price earthquake” ahead.

Bitcoin plunged toward $80,000 earlier this week, intensifying fears that a major crypto crash could be underway.

Analysts warn that the sudden downturn resembles a $1 trillion wipeout similar to last month’s crypto meltdown.

U.S. President is expected to “open the flood gates,” adding more uncertainty to market direction.

Traders are rapidly adjusting to newly swinging expectations of a December Fed rate cut, which has suddenly turned dovish.

This rapid flip in interest rate expectations is now seen as the core driver behind upcoming BTC volatility.

Market Context

Bitcoin had surged to a record high of $126,000 before entering a severe correction. The sell-off has reawakened fears that liquidity tightening or policy confusion could trigger another large-scale decline.

Market strategists note that Bitcoin’s next major move depends heavily on whether the Fed confirms or reverses its latest dovish signals — a single announcement could instantly swing crypto markets.

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