Massive price drops from these highs as BTC slips below $100,000 (Market Watch)

The Fed’s controversial stance on upcoming rate cuts put a lot of pressure on riskier assets like crypto, and bitcoin fell more than eight thousand in about a day to below $99,000.

Altcoins suffered even more, with massive price drops like XRP, AVAX, DOGE, LINK and many, many others.

BTC Crash

Bitcoin price movements prior to yesterday’s crash were very positive as the asset had added over fourteen thousand from December 10th to December 17th. This caused it to break above $100,000 and reach just above $108,000 to record its latest all-time high. .

All eyes then turned to the US Federal Reserve’s FOMC meeting, which took place yesterday. While the central bank cut 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 may stop cutting rates next year. He disputed Trump’s promise that the US could start buying BTC, saying that might not be possible.

As a result, the price of bitcoin fell sharply. It had already returned to $105,000 after the last peak, but fell further to just under $99,000 as the day progressed. Although it has managed to regain some ground and now sits above $101,000, it is still down more than 2% on the day.

Its market cap has shrunk to $2.01 trillion in CG, but its dominance over the highs has exploded to 54.6%.

Bitcoin/Price/Chart 19.12.2024. Source: TradingView Alts in Deep Red State

Altcoins plummeted further during the market-wide correction, with numerous double-digit price drops from top to bottom. Many have recovered some ground but are still deep in the red, including 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 back and post impressive gains.

However, the total crypto market capitalization fell from over $3.950 trillion two days ago to less than $3.6 trillion during yesterday evening’s lows.

Cryptocurrency Market Overview. Source: QuantifyCrypto SPECIAL OFFER (Sponsored) Binance Free $600 (CryptoPotato Exclusive): Use this link to register a new account and receive an exclusive welcome offer of $600 to Binance (full details).

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