Market Update 23rd December 2024
By Shikha Singh
Bitcoin is undergoing its first weekly decline since Donald Trump’s presidential election victory, dipping more than 7% as concerns over a cautious Federal Reserve policy overshadow optimism from the crypto-friendly Republican candidate.
As of Sunday, Bitcoin was trading around $95,000, down about $13,000 from its all-time high of $108,000 on Dec. 17, marking its biggest drop since September.
Analysts suggest the dip could signal a multi-week correction, with Bitcoin showing signs of a bearish trend.
Despite the recent pullback, institutional investors are showing continued confidence in Bitcoin. Japanese investment firm Metaplanet made its largest-ever Bitcoin purchase on Dec. 23, acquiring 619.7 BTC for nearly $60 million.
This purchase, which brings Metaplanet’s total holdings to 1,762 BTC, makes it one of the largest Bitcoin holders among public companies. The Tokyo-based firm, often compared to MicroStrategy, has averaged an acquisition price of $75,600 per BTC.
Swiss Bitcoin platform Relai also added to its Bitcoin reserves, buying 13 BTC worth $94,040, bringing its total holdings to 30 BTC. In an interesting move, Relai tagged Microsoft in its announcement, seemingly urging the tech giant to embrace Bitcoin, further showcasing growing confidence in it as a long-term asset.
While Bitcoin is facing a rough patch, several altcoins are showing signs of recovery. Solana (SOL) rose by 2.2% to $186, while Chainlink (LINK) climbed 5.1% to over $23.
Toncoin (TON) gained 3.5%, reaching $5.50, and Stellar (XLM) increased by 3%, trading at $0.363. These small rebounds indicate some resilience in the broader crypto market, even as Bitcoin continues to correct.
The broader market is still in a state of flux, with Bitcoin options expiry on December 27 and a low-liquidity environment potentially adding volatility in the final days of the year. However, some market participants remain hopeful that the long-term outlook for Bitcoin and other digital assets remains bullish, despite the current market turbulence.
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