00:00 Speaker A

Bitcoin fell into the red for 2025. In fact, around $600 billion has been wiped off its market value after it reached its record high back in October.

00:09 Speaker A

But what’s going on? 2025 was meant to be the year that was supposed to solidify Bitcoin’s legitimacy.

00:18 Speaker A

There are more and more ETFs linked now to crypto. It’s got easier regulation, institutional support, and the Trump administration has shown that it’s fully behind the industry too.

00:31 Speaker A

But that hasn’t stopped the market from falling and falling hard. Yes, in crypto, we’re told to expect volatility,

00:39 Speaker A

but why has sentiment seemingly evaporated so quickly?

00:43 Speaker A

The one reason that helps explain this fall in crypto, and it’s not just Bitcoin that’s falling, is market expectation for a Fed rate cut is also falling.

00:53 Speaker A

Market pricing for a December rate cut dropped to around 40% from over 60% just one week earlier, prompting investors to shift capital away from high-risk assets.

01:03 Speaker A

This dramatic reversal in expectations has sent ripples through cryptocurrency markets and traditional financial instruments alike.