The Federal Reserve's stance on upcoming interest rate cuts has sparked controversy, placing heavy pressure on cryptocurrencies and other high-risk assets. Bitcoin plummeted over $8,000 in just one day, falling below the $99,000 mark.
Meanwhile, altcoins have faced even more severe impacts, with significant price drops for various digital currencies such as XRP, AVAX, DOGE, LINK, and others.
BTC Crash
Bitcoin's performance was very strong before yesterday's crash. From December 10 to December 17, Bitcoin rose over $14,000, pushing the price above the $100,000 mark, and at one point soared to $108,000, setting a new all-time high.
However, the market's focus then shifted to the FOMC meeting held yesterday. Although the Fed lowered interest rates by 25 basis points as expected, Jerome Powell's speech triggered a violent market reaction, leading to declines across the entire cryptocurrency market.
Powell mentioned that the central bank might pause interest rate cuts next year, a statement that caused unease among investors. Additionally, he questioned Trump's suggestion that the U.S. could start buying Bitcoin, believing that such a move might not be feasible.
As a result, Bitcoin's price dropped significantly. After reaching a recent high, Bitcoin's price retreated from $105,000 to just below $99,000. Although Bitcoin rebounded afterward, stabilizing above $101,000, it still fell over 2% on the day.
Its market capitalization on CG has dropped to $2.01 trillion, but Bitcoin's dominance over the entire market has significantly increased, now reaching 54.6%.
Bitcoin Price Chart 2014.12.19.
Alts in Deep Red Status
During the overall market adjustment, the declines for alternative coins were even more severe, with many coins experiencing multiple double-digit drops from peak to trough. Although some currencies have rebounded, they remain significantly in the red, including XRP, DOGE, ETH, ADA, AVAX, LINK, SHIB, DOT, XLM, BCH, CRO, and others.
Santiment analysis indicates that four of these coins are expected to rebound and make significant progress.
Nevertheless, the total market capitalization of cryptocurrencies has fallen from $3.95 trillion two days ago to below $3.6 trillion last night.
Cryptocurrency Market Overview.
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