Market Update 19th December 2024
By Shikha Singh
The cryptocurrency market faced a significant downturn following the U.S. Federal Reserve’s announcement of a 25-basis-point rate cut. Bitcoin (BTC) dropped sharply under the $100K mark, falling below crucial support levels after Jerome Powell’s hawkish stance for 2025.
Despite a brief recovery to $101,020, Bitcoin saw a major correction, wiping out gains from earlier in the week when it hit an all-time high above $108K.
The Fed’s future guidance of only 2 rate cuts in 2025, compared to the anticipated 4, added to the market’s bearish sentiment.
Altcoins faced even steeper declines, with Ethereum (ETH) dropping 6%, Solana (SOL) falling 5%, and XRP plunging 10%.
Other altcoins like Avalanche (AVAX), Chainlink (LINK), and Litecoin (LTC) saw losses of 16%, while meme coins such as Dogecoin (DOGE) and Shiba Inu (SHIB) also experienced significant drops.
This led to over $860 million in liquidations across the market, with Bitcoin ETFs showing mixed results—BlackRock’s ETF saw strong inflows, but others, like Grayscale, saw outflows.
In contrast, a few altcoins bucked the trend, with Usual (USUAL) rising by 23% and Movement (MOVE) gaining 14%.
After listing on Binance, Pudgy Penguins (PENGU) experienced a 500% surge, leading to an 8% increase. On the other hand, meme coins like Dogwifhat (WIF) and Floki (FLOKI) were among the worst performers, losing 14% and 13%, respectively.
Despite the turbulence, analysts remain cautiously optimistic, with some predicting potential bouncebacks for Bitcoin and Solana in the coming weeks, especially with speculation about a rebound post-holiday and the potential impact of future events like the U.S. presidential inauguration.
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