As a seasoned investor with over two decades of experience in the cryptocurrency market, I have seen it all – from the dizzying heights of astronomical gains to the gut-wrenching depths of devastating losses. My journey in this dynamic world of digital currencies has been nothing short of a rollercoaster ride, filled with exhilaration, frustration, and moments of pure euphoria.
Looking at the current state of the market, I can’t help but feel a sense of deja vu. The price fluctuations of these cryptocurrencies are reminiscent of the early days when Bitcoin was just starting to gain traction. It’s fascinating to see new projects like Aptos and Bittensor emerge, bringing fresh ideas and innovative solutions to the table.
However, I must caution fellow investors against getting carried away by the hype surrounding these coins. As someone who has weathered numerous market cycles, I can attest that the road to success in this industry is paved with patience, discipline, and a keen understanding of the risks involved. It’s essential to approach each investment decision with a level head and a long-term perspective.
Now, let me share a little joke to lighten the mood: Why did the crypto investor cross the road? To get to the other side of the market cycle! After all, in this ever-evolving world of digital currencies, it’s crucial to maintain a sense of humor while keeping an eye on the charts. Happy investing, my friends!
Bitcoin (BTC) experienced a downtrend despite indications of potential recovery, with its intraday high peaking at $94,804 early in the day. However, this uptick was followed by a swift drop, leading to a low of $91,788. At present, Bitcoin is trading at around $92,317, marking a decrease of approximately 1.33% over the past 24 hours.
Analysts and investors who anticipated a strong finish for Bitcoin in 2021, with its value staying above $100,000, felt let down due to recent fluctuations that prevented it from closing the year on an optimistic note.
As the year nears its end, most cryptocurrencies are experiencing a decline, with Ethereum (ETH) dropping by around 2%, Ripple (XRP) falling nearly 5%, Solana (SOL) dipping slightly more than 1%, and Dogecoin (DOGE) losing 2.40%. Similar losses were reported for Cardano (ADA), Tron (TRX), Avalanche (AVAX), Toncoin (TON), Chainlink (LINK), Hedera (HBAR), Polkadot (DOT), Stellar (XLM), and several others. The total market capitalization of cryptocurrencies is currently around $3.23 trillion, having dropped almost 2%.
A Look Ahead
2024 witnessed extraordinary expansion and acceptance in the cryptocurrency market. Notably, institutional investors poured massive amounts of capital into it, driving up prices significantly. The authorization and debut of spot Bitcoin ETFs, coupled with Donald Trump’s election victory, catapulted Bitcoin (BTC) above $100,000, reaching a new peak of $108,268. This demonstrates that Bitcoin’s worth doesn’t have an upper limit according to market experts who anticipate its bull run could persist into 2025, potentially influencing other significant cryptocurrencies as the market matures.
2024 saw significant stories unfold, such as meme coins and artificial intelligence tokens. These sectors are anticipated to attract even more attention from investors, according to experts. A recent report by Bitwise suggests that the Real World Asset (RWA) sector could reach $50 billion in 2025. This sector, which accounted for less than $2 billion three years ago, is expected to grow significantly. In fact, venture capital firm ParaFi predicts that the RWA market could swell to a staggering $2 trillion by 2030. Edward Mata, CEO and co-founder of Brickken, shared this optimistic outlook in an interview.
As an analyst, I am excited to emphasize the significant role that Risk-Weighted Assets (RWA) is set to play in our industry landscape. Notably, heavyweights such as BlackRock and JP Morgan are making strategic moves to ensure they deliver optimally within the RWA domain. From my perspective, AI agents will be increasingly integrated into these processes, streamlining operations and enhancing efficiency. Additionally, I foresee the concept of Bitcoin as a national treasury becoming more prevalent across various countries. Regarding technology trends for the upcoming year, RWA and AI agents are poised to be the primary narratives that shape our industry’s trajectory.
In the recent years, meme coins have proven to be among the top-performers in the asset market. This trend is expected to persist into 2025, as noted by Dario Lo Buglio, the Chief Technology Officer at Brickken.
Meme coins might diminish or flourish over time; they could potentially establish a niche within the market next year. Regardless, we’re open to new trends and adapt to them.
Markets End Year In The Red
In yesterday’s crypto market, Ripple (XRP) was among the biggest losers, falling by 5%, due to a stronger US dollar that put pressure on various global assets, including Bitcoin (BTC). A number of other altcoins also experienced losses, with Dogecoin (DOGE), Ethereum (ETH), and Solana (SOL) all registering declines between 2% and 3%. The stock market in the US also saw a significant drop as investors adjusted their portfolios amid increasing apprehension ahead of the new year. Historically, Bitcoin has moved inversely to the U.S. Dollar Index. The dollar gained strength prior to Donald Trump’s inauguration in late January, with the incoming president proposing several economic policies.
Bitcoin (BTC) Price Analysis
Bitcoin (BTC) experienced a prolonged dip on Monday, dropping below $93,000. The digital currency has been struggling to gain traction, and this recent slide can be attributed to the Federal Reserve’s comments about a potential strategic reserve for Bitcoin and their downgraded inflation forecast for 2025. Despite the Fed’s expected quarter-point interest rate reduction, they projected only two reductions in 2025 instead of the anticipated four, causing a decrease in investor excitement. This dip brings BTC to a low of $91,268, which represents a 15% fall from its record high this month, and technical indicators suggest that the price might drop even further.
Although MicroStrategy boosted its Bitcoin holdings by 2,138 more coins, bringing its total to 446,400, Bitcoin still experienced a drop. Tether, too, increased its Bitcoin holdings, buying 7,630 BTC worth approximately $7.7 billion. Similarly, Marathon Digital and Riot Platforms also augmented their reserves. The fall in Bitcoin’s value may be due to investors cashing out around the $100,000 mark.
Concerning traders, Bitcoin appears to be trending downwards, having developed a head and shoulders chart pattern, usually indicative of a bearish reversal. Following its peak on December 17, Bitcoin plummeted swiftly. By the 20th of December, it reached an intraday low of $92,072 before rebounding to close at $98,124. Nevertheless, sellers maintained control as Bitcoin fell to $95,303 by the end of the previous weekend. Last week, Bitcoin continued its descent, dropping 0.50% and dipping below $95,000 to settle at $94,830. However, it experienced a recovery on Tuesday, rising by over 4% to reach $98,677. Despite this increase, Bitcoin struggled to surpass the 20-day Simple Moving Average and ultimately finished the day at $99,409 after a 0.74% rise.
On Thursday, Bitcoin saw a significant decrease due to active sellers, dropping approximately 4% to reach $95,691. The following day, it fell below the 50-day Simple Moving Average (SMA) after a 1.52% decline, ending at $94,241. Over the weekend, Bitcoin experienced an almost 1% increase but turned negative again on Sunday, dropping nearly 2% to $93,475. On Monday, sellers pushed the price below $93,000 following a nearly 1% drop. As of now, Bitcoin is slightly down in this session as both buyers and sellers vie for control.
If Bitcoin falls below $92,000, it might dip down to around $90,000. But some technical signs point towards a potential drop of nearly 20%. If this occurs, the value could potentially fall even lower than $80,000.
Ethereum (ETH) Price Analysis
Currently, Ethereum (ETH) is moving horizontally between approximately $3,200 and $3,500. It’s finding it tough to surpass its 50-day Simple Moving Average (SMA). On Friday, ETH briefly dipped below the 50-day SMA, reaching a low of $3,096 due to selling pressure. However, it managed to bounce back from this point, rising by 1.62% and closing at $3,470. Over the weekend, sellers took control, pulling ETH below its 50-day SMA again on Saturday, with the price dropping to $3,337. The sellers maintained their dominance on Sunday as ETH declined nearly 2%, ending the day at $3,279. On Monday, the price increased by 4.27% and closed at $3,419 before continuing its upward trend on Tuesday, surpassing the 50-day SMA and settling at $3,491.
On Wednesday, despite numerous sellers being present, ETH experienced minimal growth due to waning buyer energy. Sellers dominated on Thursday, causing a 4.62% drop and falling beneath the 50-day Simple Moving Average, settling at $3,333. Attempts for a rebound by buyers on Friday were unsuccessful, leading to further marginal decrease. On Saturday, buyers regained control slightly, pushing ETH up by 2.01% to $3,402. However, ETH dipped again on Sunday, losing 1.46% and falling to $3,352. The week started with a slight increase and heightened volatility but the current trading session has seen ETH move back into the negative territory, hovering around $3,343.
Solana (SOL) Price Analysis
On December 19, Solana (SOL) dipped below $200, decreasing by approximately 6% to reach $193. The next day, it plummeted even further to a low of $175 before rebounding to close at $194. However, over the weekend, SOL continued its downward trend, dropping nearly 7% on Saturday and 0.55% on Sunday, settling at $180. Interestingly, SOL had begun the previous week with a positive momentum, increasing by 5.30% on Monday to reach $189. The price continued to climb on Tuesday, reaching $197 after an almost 4% surge. With sellers actively present around $200, SOL only managed minimal gains on Wednesday. As buying enthusiasm waned, SOL dipped again on Thursday, decreasing by 4.57% to $188. Despite the predominant bearish sentiment, it’s worth noting that there were periods of growth earlier in the week.
As a seasoned crypto trader with years of experience under my belt, I have learned to keep a keen eye on the market trends and understand that volatility is just part of the game. Over the weekend, SOL took a dip, falling from $184 to $189 after a failed recovery attempt on Friday. However, it showed signs of resilience by surging over 6% on Saturday, reaching $195 before correcting itself and dipping again on Sunday. This pattern is not uncommon in the cryptocurrency market, and I’ve seen similar scenarios play out countless times.
Monday was a rollercoaster ride for SOL as buyers and sellers continued their battle for control. It was a tense day, with the price fluctuating wildly throughout the session. In the end, buyers managed to gain the upper hand and pushed SOL up by 0.72%.
Currently, SOL is trading around $188, down by 1.33% from its previous close. If selling pressure persists, I believe that it could potentially drop to $180 in the short term. However, I always remind myself to stay patient and not make hasty decisions based on short-term fluctuations. Cryptocurrency trading requires a long-term perspective, and it’s essential to keep an eye on the bigger picture while staying nimble enough to adapt to market changes.
Stellar (XLM) Price Analysis
Last week, Stellar (XLM) showed a positive start, with buyers trying to counteract its recent negative trend. As buyers held the upper hand, XLM experienced a nearly 4% rise on Monday, bouncing back from the 50-day Simple Moving Average (SMA) and ending at $0.370. The bullish momentum continued on Tuesday as XLM gained almost 9%, reaching $0.402, with buyers aiming to surpass the 20-day SMA. However, following this peak, XLM began to lose steam, dropping more than 5% on Wednesday and settling at $0.382. On Thursday, sellers took control when XLM fell below the 50-day SMA after a decline of over 7%, ending the day at $0.355.
On Friday, XLM experienced a decrease of 1.56%, ending the day at $0.349. A recovery started over the weekend, with XLM rising nearly 2% on Saturday to reach $0.356. However, the gains were reversed on Sunday as it fell more than 5%, closing at $0.338. As the new week began, sellers maintained control and XLM dropped almost 2% to $0.331. The ongoing session shows a slight downtrend with the price hovering around $0.328.
Cardano (ADA) Price Analysis
Last weekend, Cardano (ADA) dipped below $0.90, reaching a low of $0.883 on Sunday. But it bounced back from its 50-day Simple Moving Average (SMA) on Monday, gaining nearly 5% and climbing to $0.926. Buyers kept control on Tuesday as ADA experienced a slight rise, reaching $0.936. However, the market turned bearish on Wednesday, causing the price to decrease by about 2% to $0.916. On Thursday, ADA dropped below $0.90 and its 50-day SMA, ending the day at $0.861 after a fall of 6%.
On Friday, I observed a resurgence of market activity, pushing ADA’s intraday peak to $0.913, eventually closing at $0.876 – a nearly 2% rise. The positive trend persisted on Saturday, with ADA ascending by 1.48%, settling at $0.889. However, Sunday saw a reversal as it dipped 3.37%, landing at $0.859. The opening days of this week have been marked by significant price fluctuations due to the ongoing struggle between buyers and sellers for control. By Wednesday, buyers managed to gain some ground, albeit slightly, with ADA rising to $0.862. However, during this current session, ADA has once again slipped, with a nearly 2% decrease in its value.
Aptos (APT) Price Analysis
Last week saw a substantial drop in the value of Aptos (APT), with its price plummeting from $14.55 to a low of $8.88 at the start of the week. However, APT managed to rebound by 5.36%, reaching $9.71. On Tuesday, sellers tried to push APT below $9, causing it to dip to an intraday low of $9.26. Yet again, APT recovered and climbed by 0.108%, settling at $9.81. Unfortunately, APT faced resistance near the $10 mark, which led to selling pressure that caused it to lose nearly 3% on Wednesday, closing at $9.54.
On Thursday, pessimism about APT grew considerably as its price plummeted nearly 8%, dipping below the $9 support and ending at $8.80. Attempts to recuperate were made on Friday as APT peaked at an intraday high of $9.29, but it soon lost steam, falling back below $9 and closing at $8.73. On Saturday, APT showed a robust recovery by reclaiming the $9 mark and ending the day at $9.18, registering a rise of over 5%. However, the gains were erased on Sunday as it dipped 3.37%, settling at $8.87. The following days were characterized by intense volatility in APT as both buyers and sellers battled to assert control. As of now, APT is trading in the red for this session, down almost 2% and hovering around $8.72.
Bittensor (TAO) Price Analysis
Due to a growing negative outlook, Bittensor (TAO) has fallen below the $450 support level, causing its price to slide downward. To start off last week, TAO showed promise, recovering from a low of $439 and gaining nearly 8%, reaching $484. On Tuesday, buyers managed to keep control, pushing the price up by almost 4% and moving above $500 to settle at $503. However, things began shifting on Wednesday as TAO saw a slight decrease following significant volatility. The negative sentiment became more pronounced on Thursday as TAO dropped nearly 6% to $471.
On Thursday, buyers made an effort to bounce back, pushing TAO up to a peak of $495 during the day. However, the upward trend faltered after reaching this point, causing a decrease of 0.74%, leaving TAO at $467. There was a slight increase on Saturday, but by Sunday, it had dipped back into negative territory, falling nearly 3% to close the week at $458. Sellers maintained control on Monday as TAO dropped further to $452. As of now, TAO is trading below the $450 support level, having fallen almost 3% and currently hovering around $438.
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2024-12-31 16:03