Bitcoin (BTC) Price Volatility, Bullish Dogecoin (DOGE) Predictions and More: Bit Summary December 24

TL;DR

Bitcoin (BTC) hit $108,000 last week, but fell to $94,000 today following Jerome Powell’s comments on the Fed’s interest rate policy for next year. Despite a weekly drop of 20% to $0.32, analysts are hinting at a parabolic rally for Dogecoin (DOGE), although extremely lofty targets seem exaggerated. Shiba Inu (SHIB) fell 17% in the past seven days but is showing signs of strength, with analysts predicting a 20% bounce if key resistance levels are broken.

The BTC roller coaster

Exactly one week ago, Bitcoin (BTC) made history, hitting a new all-time high of over $108,000. However, the peak was short-lived and was followed by a substantial correction. On December 20, the price fell below $93,000, but a day later, it rose to nearly $100,000. The last few days offered another pullback, with BTC falling below $93,000 on December 23 and then recovering to its current $94,000 (according to CoinGecko data).

BTC Price, Source: CoinGecko

One factor that may affect the valuation of the asset could be the latest FOMC meeting, specifically Jerome Powell’s comments. Although the Federal Reserve chairman announced an interest rate cut of 0.25%, he warned that this policy could be on hold next year due to growing inflation concerns. He also said that the central bank is not allowed to hold BTC, which has likely cast doubt on Trump’s promises to create a strategic reserve of BTC.

The fall in the asset also coincides with massive outflows from local BTC ETFs. As reported by CryptoPotato, investors have withdrawn nearly $1.2 billion from the eleven financial products registered in the United States, with Fidelity leading the exodus.

Despite the bearish outlook, some analysts believe that BTC could be preparing for another major rally in the near future. X user Ali Martinez said the asset is “still enjoying positive momentum” due to market value to realized value (MVRV), which has fallen of late. Those willing to explore additional price forecasts and see if now is a good time to jump on the BTC bandwagon can watch our dedicated video below:

What’s next for the price of DOGE?

The latest correction in the sector has also negatively affected the largest meme coin in terms of market capitalization. Dogecoin (DOGE) is currently worth around $0.32, which is down 20% on a weekly basis.

Price DOGE, Source: CoinGecko

Similar to BTC, many market watchers believe it may return to the green lane soon. Martinez was one of those who weighed in again, envisioning a massive 12,000% price explosion if history repeats itself.

“In 2017, when Dogecoin began a parabolic run, it rose 212%, recovered 40%, and then rose 5,000%. In 2021, it rose 476%, retreated 56%, and then shot up 12,000%.Now in 2024, DOGE is up 440% and has pulled back one 46%. If history repeats itself, another parabolic rally is on the way,” he said.

It’s worth mentioning that such an exponential price increase would require Dogecoin’s market cap to skyrocket past $5.5 trillion. At the time of writing, the entire crypto sector is under $3.5 trillion in market capitalization, which makes forecasting quite difficult (to say the least).

How is SHIB?

Dogecoin’s biggest rival, Shiba Inu (SHIB), has also underperformed. Its valuation fell 17% in the past seven days, while its market capitalization currently stands at $13.2 billion. This makes SHIB the 17th largest cryptocurrency.

SHIB Price, Source: CoinGecko

According to X Rose Signals Premium user, however, the price of the meme coin has been “showing signs of strength.” The analyst set the range of $0.00002139 – $0.00001939 as the support zone and $0.00002715 as the initial target (this would require a 20% upside from the current valuation).

$0.00003083 was depicted as an “intermediate resistance”, while $0.00003511 was predicted to serve as a “major resistance”.

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