If we look at the cryptocurrency market these days, we will find that it is acting like the sea during a storm: a short period of strong rise and then a rapid fall. Most of the major currencies such as Bitcoin and Ethereum are going through a period of decline, and this is very normal at this time of the year. Let's understand why this happens and go into the details.

Market performance these days

1. Bitcoin $BTC

The price is now around $94,000, after it dropped from $100,000.

Because whales sell to close their annual accounts and make profits. Also, holidays reduce trading volume, so the market becomes sensitive to any selling movement.

2. Ethereum $ETH

Price: About $3,390.

Because of the weak demand for DeFi networks towards the end of the year, as most investors focus on liquidating open positions instead of entering new projects.

3. Solana $SOL

The price rose a bit due to good news about new partnerships in the field of digital games and network support. This made it gain some confidence compared to other currencies.

4. Ripple XRP

Price: $2.10 down

The problem is the legal issues with the SEC are still putting a lot of pressure on her.

Why does the market decline before New Year's?

Annual closing accounts: Large investors sell their assets to close the year with profits, and this creates great selling pressure on the market.

Low liquidity at the end of the year, most people stop trading because of the holidays. When liquidity is low, any big sell-off affects the whole market significantly.

Fear of the future with expectations that central banks will continue raising interest rates in 2025, people have become more cautious and do not want to take risks in the market

Profit taking: The currencies that were rising in November and December, such as Bitcoin and Solana, many people decided to sell to benefit from these profits.

A close look at the market

Bitcoin

It will try to hold above $93,000, and if it breaks this support, it may reach $90,000, but there are chances of a rebound in the first week of the new year.

Ethereum

We might see it stabilize between $3,300 and $3,400, but if there is any good news for the market, it might rise above $3,500.

Altcoins

Coins like Solana and Avalanche have a chance to continue rising if the projects associated with them continue.

Calm down and be smart. The market is very volatile during this period. If you have investments, do not be afraid of a temporary decline.

Focus on Bitcoin, Ethereum and coins that have strong projects and are not based on speculation only.

Economic and political events have a major impact, especially central bank decisions on interest rates.

Think long term

If you are not in a hurry to make profits, invest in strong currencies and leave them until mid-2025 or the end of 2025, especially with the approaching Bitcoin Halving event, which always raises the market.

The market at the end of the year is always affected by factors such as holidays, account closures, the state of the global economy, and fear of risk. But at the same time, this can be an opportunity for people who plan to invest in the long term. The most important thing is that you do not move randomly, and take advantage of any decline to choose currencies that have a strong future. This is of course just an analysis and opinion, not financial advice 👻😊