The price correction of Bitcoin has dragged down other major altcoins as the global cryptocurrency market capitalization decreased by 9.53%.
Major Altcoins followed the decline of BTC
The price correction of Bitcoin extended to Friday, December 20, as this number one cryptocurrency continued to lose its recent gains. In the past 48 hours, BTC has dropped more than 13%, falling from an all-time high of $108,364 to $92,118 before a slight recovery and trading at $95,800.
The significant market correction is largely influenced by the recent 0.25% 'hawkish' rate cut move by the U.S. Federal Reserve along with investors fleeing to safer investment assets.
Altcoins have followed BTC in recording significant corrections. Ether (ETH) dropped 18% from $4,032 to $3,115. Similarly, XRP fell from $2.6 to $1.96 with a 21% decrease, BNB dropped from $736 to $620 with a 16% decline, and SOL rounded out the top four cryptocurrencies with a 20% drop from $225 to $177.
In the futures market, over 400,000 cryptocurrency traders witnessed $1.4 billion worth of short and long positions being liquidated, according to data from Coinglass. This caused the global cryptocurrency market capitalization to drop 12% in the past day, with the current market cap at $3.2 trillion. However, the total cryptocurrency market volume increased by 31.47% to $33.98 billion, with Bitcoin's market dominance slightly rising to 57.95%.
Despite the market downturn, major cryptocurrencies continue to trade above key psychological levels. This indicates a greater resilience of the cryptocurrency market, mainly driven by institutional interest and bullish market sentiment. Therefore, this price collapse may be a temporary pullback in the expected bull cycle lasting until 2025.
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