The Fed’s controversial stance on upcoming rate cuts put a lot of pressure on riskier assets like crypto, and bitcoin tumbled by over eight grand within a day or so to under $99,000.
The altcoins suffered even more, with massive price drops from the likes of XRP, AVAX, DOGE, LINK, and many, many others.
BTC’s Crash
Bitcoin’s price movements ahead of yesterday’s crash were highly positive as the asset had added more than fourteen grand from December 10 until December 17. This resulted in soaring past $100,000 and going all the way up to just over $108,000 to register its latest all-time high.
Then, all eyes turned to the US Federal Reserve’s FOMC meeting, which took place yesterday. Although the central bank indeed cut the interest rates as expected by 25 basis points, Jerome Powell made a couple of statements that pushed the entire crypto market south.
First, he noted that the central bank might stop reducing the rates next year. He disputed Trump’s promise that the US could start buying BTC, saying that this might not be possible.
As a result, bitcoin’s price tumbled hard. It had already retraced to $105,000 after the latest peak but dumped even more to just under $99,000 as the day progressed. Although it has managed to recover some ground and now sits above $101,000, it is still more than 2% down on the day.
Its market capitalization has declined to $2.010 trillion on CG, but its dominance over the alts has exploded to 54.6%.
Bitcoin/Price/Chart 19.12.2024. Source: TradingViewAlts in Deep Red State
The alternative coins plummeted even more during the market-wide correction, with numerous double-digit price drops from the top to their respective bottom. Many have recovered some ground but are still deep in the red, such as XRP, DOGE, ETH, ADA, AVAX, LINK, SHIB, DOT, XLM, BCH, CRO, and others.
According to Santiment, four of them have a good chance to bounce off and mark some impressive gains.
Still, the total crypto market cap dumped from over $3.950 trillion two days ago to under $3.6 trillion during the lows yesterday evening.
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