Bitcoin Plunges to $122K as Crypto Mania Hits Fever Pitch - What’s Next for Digital Gold?

Crypto markets hit the brakes as Bitcoin tumbles to $122,000 following unsustainable rally momentum.

The Correction Nobody Wanted

After weeks of relentless upward movement, reality bites back. The digital asset space experiences its first significant pullback since the current bull cycle began.

Overheated Markets Cool Down

Traders scramble as leveraged positions get liquidated across major exchanges. The fear and greed index flashes extreme greed for consecutive weeks before this inevitable correction.

What Comes After the Dip?

Institutional money waits in the wings, traditional finance veterans shaking their heads while secretly checking portfolio allocations. The age-old question remains: buy the dip or run for cover?

Another day, another billion made and lost - just Wall Street with better technology and worse coffee.

Federal Reserve Governor Stephen Miran — a recent TRUMP appointee — said Tuesday his view of the neutral interest rate has shifted “from one end of the range to the other,” during a discussion at the Managed Funds Association Policy Outlook 2025. He now believes the neutral rate should stand at 0.5%. Miran pointed to tighter immigration restrictions and evolving expectations about the federal deficit as the main factors behind his reassessment.

Miran’s comments suggest that long-term forces shaping the U.S. economy are changing. A smaller labor pool could limit growth, while rising fiscal pressures might keep the Fed’s balancing act between inflation and employment more complex. His remarks come as policymakers debate how much room the central bank has to cut rates without reigniting price pressures.

Fed officials meet at the end of this month to decide about a possible further rate cut, however, without critical data coming from the government as the shutdown continues.

Miran also noted that economic growth in the first half of the year was weaker than anticipated, weighed down by uncertainty over trade and tax policy. But Miran struck a more positive tone for the months ahead, saying much of that uncertainty has now cleared. “With clearer policy signals, I expect a steadier pace of growth,” he said.

Crypto stocks suffer

The broad pullback in crypto prices is hitting the related stocks, led by a 7% decline in Strategy (MSTR) and a 4% loss for Coinbase (COIN). Ether (ETH) treasury companies Bitmine Immersion (BMNR) and Sharplink Gaming (SBET) are down 3% and 7%, respectively.

BItcoin miners are mostly in the red, led by MARA Holdings falling 4% and Riot Platforms (RIOT) 3%. Hut 8 (HUT) is lower by 2%.