Market Update 11th December 2024
By Shikha Singh
Bitcoin recently saw a dramatic drop after briefly surpassing the $100,000 mark, falling to around $94,000. This drop was mainly due to long-term holders taking profits and leveraged traders facing heavy liquidations, totaling $1.6 billion. However, Bitcoin has since recovered to around $97,000, maintaining a market capitalization of $1.93 trillion. Institutional interest in Bitcoin continues to grow, with $3.85 billion in inflows into crypto investment products this year, reflecting its appeal among investors.
Ethereum has also been facing challenges, dropping slightly to $3,655 after facing resistance around the $4,094 mark. The asset is struggling to maintain upward momentum, reflecting broader market trends.
Altcoins have been particularly hard-hit, with significant losses across many larger cryptocurrencies like Solana, Binance Coin, and XRP, and smaller altcoins like GALA, SAND, and TAO experiencing double-digit declines. Meme coins, in particular, have seen sharp declines, erasing earlier gains. Despite these losses, some altcoins have managed to recover modestly after the initial sell-off.
Stablecoins, especially Tether (USDT), continue to dominate the market, with USDT reaching over 165 million active wallets, far surpassing other stablecoins. This growth highlights the importance of stablecoins, particularly in emerging markets where they provide financial inclusion for the unbanked. While other stablecoins like USDC and DAI have seen modest growth, they remain far behind USDT in terms of adoption.
The overall cryptocurrency market cap has dropped to $3.46 trillion, with a $300 billion loss in a single day during the recent volatility. Despite this, Bitcoin’s dominance has risen to 53%, showcasing its strength compared to altcoins. While the market remains uncertain, there are signs that it may be stabilizing after the sharp corrections.
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