#BinanceAlphaAlert

Bitcoin, Ethereum, and Dogecoin All Dropped

Bitcoin (CRYPTO: BTC) is the biggest loser, falling 6.2% in the past 24 hours as of 3 p.m. ET and dropping below the $100,000 level. Ethereum (CRYPTO: ETH) is down 9.7% in that time to $3,350 and Dogecoin (CRYPTO: DOGE) is off 16.8% to $0.3032.

The Fed's impact on crypto

As much as cryptocurrencies have been marketed as a way out from under the traditional financial ecosystem, the crypto market trades a lot like traditional risk assets like growth stocks. In this case, when interest rates rise, growth stocks fall and crypto moves down along with them.

A FOMO cycle nearing its end?

This current run for crypto started after the election when there was an increase in speculation that President-elect Donald Trump would open up a bull run for the crypto market. And that may happen, but the gains seen didn't line up with any fundamental changes in the industry.

Questions heading into 2025

The gains of the last year were largely based on speculation and momentum from items like the approval of exchange-traded funds (ETFs) and the election. But in 2025 there may be fewer of these tailwinds and pricing is driven by the number of new buyers coming into the market, like Bitcoin.