As a seasoned investor with decades of experience under my belt, I’ve seen market cycles come and go, and I must say, the current one is as unpredictable as ever. Each day brings new challenges, and keeping up with the latest trends and price movements has become an exhilarating yet daunting task.
Over the weekend, Bitcoin (BTC) and various other cryptocurrencies experienced a steep fall, causing markets to plummet substantially. In a mere day, BTC dropped from approximately $108,000 to its present value of $95,000 due to the Federal Reserve’s announcement of lessening rate cuts in 2025. This news had a severe impact on the market. As a result, Bitcoin posted its first weekly decline since Donald Trump’s election victory, with a 9% drop in value over the last week.
Almost all cryptocurrencies registered double-digit losses over the weekend, with BTC’s losses dwarfed by those of Ethereum (ETH), down nearly 15% over the past week as it slipped below $3,500. Solana (SOL) is down almost 3% in the past 24 hours and nearly 16% over the past week thanks to substantial losses over the weekend. Meanwhile, Dogecoin (DOGE) is down almost 21% over the past week. The crypto market cap is down just over 1.1% and currently sits at $3.3 trillion.
Major Crypto Bloodbath
The cryptocurrency market faced one of its biggest meltdowns in recent memory with $1.2 billion in liquidations as prices tumbled across the board. As a result, Bitcoin (BTC) fell from an all-time high of over $108,000 to below $95,000. Other major cryptocurrencies, including Ethereum (ETH), Solana (SOL), and Dogecoin (DOGE) registered double-digit losses as the crypto market took a bearish turn. The downturn started after Federal Reserve Chair Jerome Powell’s comments after the FOMC meeting.
After experiencing a substantial growth spurt following Trump’s election, the markets started to decline when Powell and the Federal Reserve adopted a more aggressive stance on interest rates and raised worries about inflation. Furthermore, Powell announced that the Fed would decrease the projected rate cuts from four in 2025 to just two, leading to a substantial market selloff.
Bitcoin (BTC)’s sharp fall
Bitcoin (BTC) fell sharply over the weekend after the Federal Reserve’s warning about inflation. As a result, around $500 billion was wiped out from the market. BTC dropped around 10% but was dwarfed by losses by Ethereum (ETH), Solana (SOL), and Dogecoin (DOGE). Federal Reserve Chair Jerome Powell warned that interest rates will not come down as quickly as expected and reduced the number of planned interest rate cuts to just two in 2025. BTC is currently trading around the $95,500 level.
Currently, Cathie Wood, the head of Ark Invest Capital, continues to express her belief about Bitcoin’s potential value. She anticipates that Bitcoin could reach $1 million by the year 2030, which would put its total market value at a staggering $20 trillion.
Bitcoin’s scarcity exceeds that of gold. Unlike gold, where increased prices lead to increased production and a rise in supply, Bitcoin’s supply cannot be inflated in this manner.
Experts predict that Bitcoin and various other digital currencies may exhibit significant fluctuations in value during the upcoming holiday season and following weeks. According to James Tolenado, COO of Unity Wallet, he expressed this viewpoint.
Regarding the upcoming holiday season and Bitcoin’s performance, it’s essential to understand that Bitcoin tends to be unpredictable, similar to water being wet. Its movements are never consistent, and there is no clear pattern at year-end or when transitioning into a new year. In some instances, its value increases in the New Year, while other times it declines. Therefore, looking back historically, Bitcoin generally shows a mix of behavior around Christmas and New Year’s.
Coinbase, Kraken Donate $1M Towards Trump Inauguration
Multiple digital currency companies such as Coinbase and Kraken have contributed financially to Donald Trump’s inauguration event. Specifically, both Coinbase and Kraken donated $1 million each to the Trump-Vance Inaugural Committee, which is planning various events in conjunction with the January 20th swearing-in ceremony, including galas, parades, and dinners. Additionally, Ripple has promised a contribution of $5 million worth of XRP to this committee. Kara Calvert, Vice President of U.S. Policy at Coinbase, made a statement regarding this matter.
As an analyst, I am dedicated to collaborating closely with the current Administration, bridging gaps between both parties, in our pursuit of establishing clear regulations for cryptocurrency. I eagerly anticipate partnering with this Administration, recognized for its progressive stance on cryptocurrencies, as we construct the future of digital assets within the United States.
MoonPay has promised to contribute funds towards the initial committee, though the specific sum remains undisclosed.
Bitcoin (BTC) Price Analysis
Over the weekend, Bitcoin (BTC) dropped below $96,000 and reached an intraday low of $92,072 on Friday. This decline followed Bitcoin surpassing $100,000 to establish a new record high, with the asset experiencing significant price fluctuations. Analysts believe these fluctuations are due to traders taking profits after Bitcoin exceeded $100,000. Bitcoin has been generally bullish since Trump’s election win but experienced its first weekly drop since markets became bearish. The decline in Bitcoin can also be linked to statements made by Federal Reserve Chair Jerome Powell, who indicated that rate cuts would be less frequent in 2025. Additionally, Powell stated that the Fed is not allowed to hold Bitcoin or other cryptocurrencies as reserve assets.
Regardless of Bitcoin’s recent dip, analysts remain optimistic about a rebound, predicting it might even surpass $150,000 by 2025 due to increasing institutional investment and beneficial policies during the Trump administration. However, this past weekend saw a drop that triggered approximately $258 million in liquidations across derivatives markets, with $30 million coming from long positions.
In my analysis as an observer, the sentiment surrounding Bitcoin shifted after it reached a new all-time high on Tuesday. Initially, the week began positively with a 1.50% increase to $105,746 on Monday. Bitcoin continued its upward trajectory on Tuesday, breaking the previous record at $108,269. However, Wednesday saw a significant change in sentiment as the price dipped nearly 6%, down to $100,195. Attempts were made by buyers to recover on Thursday, pushing Bitcoin up to $102,792. Yet, the momentum waned after this level, allowing sellers to take charge. Consequently, Bitcoin fell below the 20-day Simple Moving Average (SMA) and the $100,000 mark, resulting in a 2.49% drop, ending the day at $97,703.
Bitcoin dipped to a low of $92,072 on Friday, dropping beneath crucial support points. Despite this, it managed a slight recovery, ending the day at $98,124. However, pessimistic feelings resurfaced over the weekend as Bitcoin fell to $97,505 following a minor decrease. The bearish trend continued on Sunday with increased selling pressure causing a 2.26% drop to $95,303, marking a negative end to the weekend. As we speak, Bitcoin is slightly increasing in value as investors attempt to regain momentum and push towards the $100,000 threshold.
Conversely, if sellers regain dominance, Bitcoin might slip under its 50-day Simple Moving Average (SMA) and potentially reach a low of around $90,000.
Ethereum (ETH) Price Analysis
After hitting over $4,000 last week, Ethereum (ETH) has slid under $3,500 due to recent market fluctuations. ETH had reached a peak intraday high of $4,106 on Monday, but instead of holding that position, it dipped by 2.33% and fell below the $4,000 mark on Tuesday, settling at $3,892. The downtrend continued on Wednesday as ETH dropped nearly 7%, falling beneath its 20-day Simple Moving Average (SMA) to settle at $3,625. A recovery effort was made by buyers on Thursday, pushing ETH up to an intraday high of $3,762; however, it failed to maintain this momentum and dropped almost 6% to dip below the $3,500 level, settling at $3,415.
On Friday, ETH reached its lowest point of the day at $3,096, sliding beneath its 50-day Simple Moving Average (SMA) due to sellers trying to push it under $3,000. However, it managed to bounce back from this level and climb above the 50-day SMA again, regaining $3,000 and closing at $3,470. But hopes for a lasting recovery were quickly dampened over the weekend as ETH slid almost 4% on Saturday, sinking below the 50-day SMA to close at $3,336. The downtrend continued on Sunday as ETH failed to recover, falling by 1.71% and ending the day at $3,279. Currently, in this session, buyers are trying to initiate a recovery for ETH but it remains slightly down.
Investors aim to gather pace and propel Ethereum beyond its 50-day Simple Moving Average. Should they achieve this, Ethereum may head towards the $3,500 mark. Conversely, if traders regain control, Ethereum could dip to $3,000 before potential recuperation.
Solana (SOL) Price Analysis
Solana (SOL) is looking to recover after dropping to its support level of $180 over the weekend. SOL suffered a monumental decline after turning bearish on Wednesday, with the altcoin down almost 16% over the past week. SOL started the week in the red in an indication of things to come, dropping 3.55% to $216. However, it recovered on Tuesday, rising to an intraday high of $228 before settling at $223, an increase of 3.23%. Bearish sentiment returned Wednesday as SOL dropped by 7.50% to go below the 50-day SMA and settle at $206. Sellers retained control on Thursday as SOL slipped below $200 after a drop of just over 6% and settled at $193.
Yesterday, I witnessed a steep drop in my SOL investments when it plunged to an intraday low of $175 on Friday, dipping below the $180 support level momentarily. However, it bounced back, managing to stave off selling pressure and recording a minimal gain, ending the day at $194. Unfortunately, this recovery was short-lived as another attempt to regain the $200 mark failed on Saturday, causing SOL to turn red once more. The price of SOL soared to an intraday high of $202 but soon reversed direction as sellers took over. Consequently, I experienced a nearly 7% loss and saw SOL fall to $181, just above the crucial $180 support level. Buyers made another effort at recovery on Sunday as SOL climbed to an intraday high of $187 before running out of steam. As a result, my SOL investment registered a minimal decline, settling at $180. Today, I’m seeing some recovery in my SOL investments but the price is exhibiting considerable volatility, having dipped to an intraday low of $176 and peaked at an intraday high of $187 before settling at $181, showing a slight increase.
Dogecoin (DOGE) Price Analysis
Pessimism regarding Dogecoin (DOGE) grew stronger last week as it dipped under its 50-day Simple Moving Average (SMA) and an important support line. DOGE began the week with losses, sliding by about 1% on Monday to close at $0.401. Sellers remained in control on Tuesday, causing the price to dip more than 2%, falling below $0.40 to settle at $0.393. The bearish trend became even stronger on Wednesday as DOGE plummeted over 9% to close at $0.357, just above the crucial $0.30 support level. DOGE experienced a more significant decline on Thursday, dropping by over 12% to slip beneath its 50-day SMA and key support line, ending the day at $0.313.
DOGE plummeted to a low of $0.262 on Friday as sellers attempted to drive it below $0.30. However, it recovered from this level to reclaim $0.30 and register a marginal increase to settle at $0.317. Saturday began with DOGE surging to $0.35 before losing momentum. As a result, it dropped back and settled at $0.319, registering only a marginal increase. However, it was back in the red on Sunday dropping by 2.47% and settling at $0.312. The current session sees DOGE marginally down as sellers attempt to push it below $0.30.
Ripple (XRP) Price Analysis
Starting from its peak of $2.72 on Tuesday, Ripple (XRP) has been on a downtrend. Following this peak, XRP dipped, reaching $2.56 before experiencing a 3.38% increase. However, the mood shifted negatively on Wednesday as XRP plunged more than 10%, dropping below the 20-day moving average and settling at $2.30. Buyers made an effort to recover XRP, pushing it up to an intraday high of $2.43. Despite this, XRP failed to climb higher and fell by 3.10% to close at $2.23. The bearish trend continued on Friday when XRP hit a low of $1.95 before recovering slightly, registering a 1.83% increase, and closing at $2.27.
On Saturday, XRP’s recovery didn’t hold up and it dipped back into the negative territory, decreasing nearly 2% to reach $2.23. Sellers maintained their grip on Sunday, causing XRP to slide further by 1.58%, dropping to $2.20. During the current trading session, XRP has continued to decline, falling 1.27% to $2.17.
Aptos (APT) Price Analysis
In simple terms, the cryptocurrency APT has experienced a significant drop of approximately 35% over the last week, reaching new lows. The slide started on Tuesday when it fell more than 7%, falling below its 20-day Simple Moving Average (SMA) and settling at $12.92. The sellers remained in control on Wednesday, causing the price to drop another 8.2% and going even lower than its 50-day SMA, finishing at $11.85. APT saw a brief recovery attempt on Thursday, reaching an intraday high of $12.72, but buyers lost momentum after that level and the price fell by about 4%, ending at $11.36. The cryptocurrency witnessed intense volatility on Friday as both buyers and sellers fought for control, with sellers ultimately gaining the upper hand and pushing APT down by 4.31% to close at $10.87.
On Saturday, a strong bearish trend emerged for APT as it dropped significantly by 12.46%, falling beneath $10 to reach $9.51. The following day, Sunday, saw sellers maintain their dominance, causing APT to decrease further by 3.16% to $9.21. Currently, in the ongoing session, APT is decreasing by 1.42%, trading at $9.10 as sellers aim to push the price below the $9 mark.
Celestia (TIA) Price Analysis
Celestia (TIA) dropped to a key support level on Monday when it fell to $6.58. With sellers retaining control on Tuesday, TIA dropped below this level and the 50-day SMA to $6.26, registering a fall of almost 5%. TIA fell below $6 and the 200-day SMA on Wednesday after a drop of 8.20% and settled at $5.74. Bearish sentiment intensified on Thursday as TIA dropped almost 11% and settled at $5.12. Sellers drove the price to an intraday low of $4.34 on Friday. However, TIA recovered from this level to register an increase of 1.86%, settling at $5.22.
Over the course of the weekend, I observed a resurgence of bearish feelings as the price dipped below $5 on Saturday, marking a nearly 6% decline following an unsuccessful effort to regain $6. On Sunday, sellers continued to hold sway, causing TIA to register a minimal decrease and conclude the weekend at $4.90. Currently, in this session, TIA is making an effort to reclaim the $5 mark, having risen by 1.45%.
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2024-12-23 12:10