Crypto Crash Today: Bitcoin Faces Heightened Volatility as Silver Hits Record Highs and Inflation Remains Sticky

Bitcoin is encountering increased downside pressure heading into the FOMC decision, with macroeconomic crosscurrents creating a volatile backdrop for digital assets. The current BTC trading around $92.75K, up 1.50% over the last 24 hours, masks underlying fragility as traditional safe-havens show signs of exhaustion.

Legacy Assets Overbought: The Canary in the Coal Mine

Silver’s spectacular rally to $79/oz has created extreme overbought conditions across precious metals and legacy assets broadly. The RSI indicator climbing near 90 signals that these markets have stretched beyond sustainable levels, historically a precursor to sharp mean-reversions. This technical excess, combined with capital rotation dynamics, creates spillover risks for risk assets like cryptocurrency.

Inflation Persistence Weighs on Rate Expectations

November’s inflation reading of 2.7% continues to exceed the Federal Reserve’s 2% target, perpetuating uncertainty around the policy trajectory. Despite expectations for potential rate cuts, sticky price pressures keep Fed officials on alert. This ambiguity around monetary policy direction has kept Bitcoin in a consolidation pattern, as market participants await clearer guidance from the upcoming FOMC statement.

Flash Crash Risk in Focus

The combination of technical overbought conditions in legacy markets, macro uncertainty, and potential capital flight from crowded positions creates a scenario where crypto crash today remains a tangible tail risk. While some market participants anticipate a resumption of bullish momentum post-correction, the immediate near-term setup suggests volatility could spike sharply in either direction.

For Bitcoin traders, positioning ahead of FOMC remains cautious, with sideways price action reflecting the tug-of-war between bullish momentum and macroeconomic headwinds.