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VIX Soars 74% as Fed Rate Cut Sends Bitcoin Below $100K

VIX Spikes 74% as Fed Rate Cut Triggers Bitcoin Drop Below $100K On December 18, 2024, financial markets witnessed dramatic turbulence as the Chicago Board Options Exchange (CBOE) Volatility Index ( VIX ) skyrocketed 74% , marking its largest single-day jump since 2018. This surge came on the heels of a 25-basis-point rate cut by the U.S. Federal Reserve and hawkish commentary from Fed Chair Jerome Powell. The rate cut triggered significant reactions across markets, with Bitcoin (BTC) falling below the psychological $100,000 mark, U.S. equities dropping 3%, and the U.S. Dollar Index (DXY) hitting a two-year high. The volatility leaves investors wondering whether a market rebound is imminent, as history suggests. Fed’s Rate Cut and Hawkish Commentary The Federal Reserve’s decision to lower interest rates by 25 basis points was widely anticipated, but Chair Powell’s hawkish tone during the post-announcement press conference surprised markets. Key Points from Powell’s Commentary: Tightening Signals: Powell emphasized that the rate cut does not mark the beginning of a prolonged easing cycle. Inflation Concerns: The Fed remains focused on combating persistent inflation, indicating further tightening if necessary. Market Uncertainty: Powell’s statements introduced ambiguity about future monetary policy, unsettling markets. VIX Soars Amid Market Jitters The VIX, often referred to as Wall Street’s “fear gauge,” measures market expectations for volatility. The 74% spike on Dec. 18 underscores the heightened uncertainty across global markets. Why the VIX Spike Matters: Investor Sentiment: A sharp rise in the VIX often reflects increased risk aversion among investors. Market Correlation: Historically, large VIX spikes have been associated with local market bottoms for both Bitcoin and traditional equities. Rebound Potential: Analysts note that rebounds typically occur after such significant volatility, offering a glimmer of hope for investors. Bitcoin Falls Below $100K Bitcoin’s price declined sharply, dipping below the $100,000 threshold amid the market turmoil. This marks a significant retracement from its recent highs and has left investors speculating about the cryptocurrency’s next move. Historical Context: Bitcoin has previously exhibited resilience following sharp market corrections. According to data from CoinDesk , similar VIX spikes in the past have coincided with BTC finding local bottoms. Analyst Predictions: Rebound Likely: Some analysts predict a near-term rebound, citing Bitcoin’s oversold conditions. Long-Term Support: Others remain bullish on Bitcoin’s long-term prospects, with forecasts suggesting a potential climb to $145,000 by mid-2025 . Impact on U.S. Equities and Dollar Index U.S. equities were not spared, with major indices suffering a 3% drop on Dec. 18. Meanwhile, the Dollar Index (DXY) surged to a two-year high, signaling heightened demand for the greenback as a safe haven. Key Takeaways: Equities Under Pressure: The sharp decline reflects investor concerns about economic growth and monetary policy uncertainty. Dollar Strength: The rising DXY highlights the dollar’s dominance during periods of market stress. What’s Next for Markets? While the immediate market reaction has been negative, historical trends suggest a potential rebound. Both Bitcoin and the S&P 500 have previously recovered strongly following sharp increases in the VIX. Factors to Watch: Fed Policy Updates: Any clarification on the Fed’s monetary policy will likely influence market direction. Bitcoin’s Resilience: BTC’s ability to hold key support levels will be critical for its short-term outlook. Global Economic Indicators: Developments in inflation and growth metrics will shape investor sentiment. Conclusion The 74% spike in the VIX, combined with Bitcoin’s drop below $100,000 and a sharp decline in U.S. equities, underscores the fragility of global markets in the face of monetary policy uncertainty. While the immediate outlook appears grim, historical patterns offer hope for a recovery. As markets adjust to the Fed’s hawkish stance, investors will closely monitor key indicators and trends. Bitcoin’s ability to regain momentum and broader market stabilization will be critical in the weeks ahead. To learn more about the innovative startups shaping the future of the crypto industry, explore our article on latest news , where we delve into the most promising ventures and their potential to disrupt traditional industries.

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Bitcoin Balances on a Razor’s Edge: Is a Breakout or Breakdown Looming?

On Friday afternoon, crypto markets appeared to catch their breath, though traders remained on edge, bracing for bitcoin’s next twist. At press time, BTC was trading at $96,800 to $97,150 per coin, while the broader crypto economy stood at $3.34 trillion—down 2.7% after some recovery. Bears Take a Breather Despite recent turbulence, the crypto market Bitcoin World

Orbs Introduces Liquidity Hub Version Two To Set a New Standard for DEX Liquidity

December 20, 2024 – Tel Aviv, Israel Orbs, the layer-three protocol revolutionizing liquidity optimization across chains, has announced the release of Liquidity Hub version two. The upgrade adds a slew of new features to deepen on-chain liquidity for DEXs (decentralized exchanges) and to enhance the decentralized trading experience. Liquidity Hub version two provides DEXs with advanced tools and integrations, enabling them to deliver superior liquidity and execution. This positions them as strong, self-sufficient alternatives to CEXs (centralized exchanges). Traditionally, decentralized marketplaces struggle to attain sufficient liquidity, leading to high volatility and slippage. Liquidity Hub version one solved these challenges by procuring liquidity from multiple sources while offering MEV protection and flexible gasless transactions. With version two, Orbs builds on the foundation of its predecessor by introducing advanced optimizations and new tools to enhance the liquidity experience. The latest version refines how DEXs access and manage liquidity, streamlining operations and improving execution efficiency directly on-chain. These updates further reduce operational complexity while maintaining seamless integration across venues. Core features of version two include the following. Dynamic fees – Fees are now calculated in real-time as a percentage of the savings achieved, ensuring that traders benefit from optimized costs, making swaps more efficient. Enhanced AMM router price simulation – AMM prices are continuously monitored throughout the Dutch auction process, ensuring superior pricing even during volatile market conditions. Provable outcomes with LH Explorer – Provides visibility into every transaction, showing AMM simulated prices, Liquidity Hub prices, fees, gas costs and savings. Orbs’ chain-agnostic liquidity layer enhances the capabilities of DEXs and emerging networks without the need to migrate liquidity or bridge assets. Liquidity Hub version two builds upon this foundation, operating as a decentralized backend that seamlessly integrates with existing EVM (Ethereum Virtual Machine) and non-EVM smart contracts. This frees DeFi projects to focus on product innovation and market expansion rather than getting sidelined by liquidity management hurdles. The introduction of Liquidity Hub version two stands as a significant milestone in Orbs’ ongoing efforts to refine on-chain trading infrastructure. By combining real-time fee optimization, continuous AMM price monitoring and provable outcomes through LH Explorer, version two delivers better execution prices for traders. In the process, it ensures enhanced competitiveness for DEX operators, enabling them to attract more liquidity providers and traders. About Orbs Orbs is a decentralized layer-three blockchain infrastructure designed specifically for advanced on-chain trading. Orbs optimizes trading with aggregated liquidity, advanced trading orders and on-chain derivatives. Orbs enhances the capabilities of both EVM and non-EVM smart contracts without moving liquidity onto a new chain. This one-of-a-kind setup acts as a decentralized backend that brings CeFi-level execution to DeFi trading. Learn more at the website . Contact Ran Hammer , Orbs This content is sponsored and should be regarded as promotional material. Opinions and statements expressed herein are those of the author and do not reflect the opinions of The Daily Hodl. The Daily Hodl is not a subsidiary of or owned by any ICOs, blockchain startups or companies that advertise on our platform. Investors should do their due diligence before making any high-risk investments in any ICOs, blockchain startups or cryptocurrencies. Please be advised that your investments are at your own risk, and any losses you may incur are your responsibility. Follow Us on Twitter Facebook Telegram Check out the Latest Industry Announcements The post Orbs Introduces Liquidity Hub Version Two To Set a New Standard for DEX Liquidity appeared first on The Daily Hodl . Bitcoin World