This morning, the entire crypto market plummeted! Over 110,000 traders were liquidated!

On December 15th, Bitcoin continued its downward trend, falling below $88,000 during trading. As of press time, Bitcoin was at $87,967.8, down 2.48%.

In addition to Bitcoin, Ethereum decreased by 1.99%, SOL coin dropped 2.9%, XRP declined 2.35%, Dogecoin fell 3.72%, and ADA decreased 3.63%.

Data from Coinglass shows that in the past 24 hours, the total liquidation of cryptocurrency contracts across the network reached $270 million, involving 115,700 traders. Among these, long positions were liquidated for $230 million, and short positions for $35.23 million. The largest single liquidation occurred on Hyperliquid-ETH, valued at $4.8542 million.

Analysis suggests that the significantly cooled expectations of Federal Reserve rate cuts are the main reason for the sell-off of these risk assets. Although the Federal Reserve cut rates last week, Fed Chair Powell's stance on whether to cut rates in January remains unclear. Some believe that the Fed’s decisions are increasingly dependent on economic data, making the January rate cut more uncertain. According to CME “FedWatch”: the probability of a 25 basis point rate cut in January is 24.4%, with a 75.6% chance of holding rates steady. The probability of a total 25 basis point cut by March next year is 41.9%, with a 49.8% chance of no change, and an 8.3% chance of a 50 basis point cut. Last week, several Fed officials spoke out. Fed’s Collins stated that the labor market is cooling but remains roughly balanced; inflation is still too high, and the economy shows growth momentum, with a desire to keep monetary policy moderately restrictive. Chicago Fed President Goolsbee said he voted against this week’s policy because he wants to wait for more economic data to determine whether tariffs' impact on inflation is only temporary. Regarding the 2026 rate cut outlook, the number of rate cuts is expected to exceed the median forecast. Cleveland Fed President Mester stated that the Fed will have better visibility after new data is obtained. “I lean toward a slightly more restrictive policy stance.” Philadelphia Fed President Posen said, “Inflation has a good chance to decline as we move into next year.” She described the labor market as “pressured but not collapsing,” warning that hiring is concentrated in healthcare and social services industries, indicating broader hiring remains weak. She said, “The labor market is decent, but downside risks are rising.”

On the institutional front, Standard Chartered Bank recently significantly downgraded its Bitcoin forecast. Geoff Kendrick, Head of Global Digital Asset Research at Standard Chartered, told clients in a report that the bank now expects Bitcoin to be around $100,000 by the end of this year. Previously, Kendrick had indicated that Bitcoin could reach $200,000 by the end of 2025. Kendrick predicted that next year, Bitcoin would reach $150,000, roughly half of the previous target of $300,000. He pointed out that the change in target prices is mainly due to recent sell-offs in Bitcoin. Since its peak in early October, Bitcoin has fallen approximately 27%. “The price action has forced us to adjust our Bitcoin price forecast,” Kendrick added. Standard Chartered believes that large Bitcoin holders’ buying has “bottomed out,” although ETF inflows may “periodically” rebound.

Regarding the international situation, on the 14th, the US and Ukraine held closed-door talks in Berlin to discuss the “peace plan” proposed by the US to end the Russia-Ukraine conflict. The meeting lasted over five hours, and the agenda for the day was concluded, with both sides agreeing to continue discussions on the 15th. Just before the meeting began, Ukrainian President Zelensky stated that Ukraine agreed to accept security guarantees similar to NATO’s Article 5 collective defense clause offered by the US and Europe. The core issues of the talks remain territorial disputes, security guarantees, and the freezing of Russian Central Bank assets by the EU. US Special Envoy Wittekov issued a memorandum after the talks. The memorandum shows that representatives from both sides engaged in in-depth discussions on the “peace plan,” economic agenda, and other topics, achieving “significant progress.” The memo did not disclose specific details about the “significant progress.”