Bitcoin Crash Risk: 65% Drop Projected Amid Fed Liquidity Concerns

The Bitcoin market faces a significant potential crash, with experts predicting a 65% drop based on concerns over Federal Reserve liquidity policy. The Federal Reserve’s hawkish stance on interest rates has impacted crypto markets, triggering sell-offs from large investors known as ‘whales’ and amplifying volatility. This comes after Bitcoin experienced a sharp price decline in August 2025 when the Fed indicated it would maintain restrictive monetary policy for longer. A study of market behavior during previous post-halving cycles suggests similar patterns are likely, prompting institutions to monitor the cryptocurrency closely. Despite this risk, experts predict a potential year-end target of $180,000 for Bitcoin if liquidity remains stable.