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Bitcoin's Correction: Blow or Blip?

Assessing Root Cause and Expectations

Ecoinometrics

Dec 23

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After a quarter of very good performance, Bitcoin's bull market is hitting some roadblocks.

Last week, a particular event triggered a sharp dip sending BTC below $100,000.

But is this dip a real blow to the bull market, or just a blip on the way to a new all-time high?

Let's discuss.

The Ecoinometrics newsletter gives you insights from crypto and macro data to help you make better investment decisions.

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Bitcoin's Correction: Blow or Blip?

The Takeaway

The FOMC's December 18th meeting triggered a sharp Bitcoin correction as the Fed raised its rate projections by 50bps for 2025-2026.

While this sparked the third-largest Bitcoin ETF outflow since launch, the Fed's adjustment merely reinforces its existing stance rather than marking a policy shift.

Our market simulation suggests this represents a temporary setback in an otherwise intact bull market, though holiday trading volumes may add short-term uncertainty.