$BTC In a week that began with optimistic expectations, the cryptocurrency market in December 2024 suffered an abrupt and dramatic decline that took many investors by surprise. It all started when on Monday morning, Bitcoin, the leading cryptocurrency, began to show signs of weakness after rumors circulated that a major exchange was being investigated for fraudulent practices.
The news quickly leaked through social media, generating a wave of panic among investors. The price of Bitcoin, which had been hovering around $100,000, suddenly fell below $90,000 within hours. This drop triggered a series of massive liquidations, affecting not only Bitcoin but also altcoins like Ethereum, Solana, and Dogecoin.
On Tuesday, the situation worsened when it was officially announced that the Federal Reserve of the United States had decided to keep interest rates higher than expected, further discouraging investment in high-risk assets like cryptocurrencies. Financial analysts, on news programs and online analysis platforms, began to speculate about an imminent "crypto winter," which only accelerated the panic selling.
By Wednesday, confidence in the market was on the brink of collapse. Exchange platforms like Coinbase and Binance reported technical issues due to the high volume of transactions, adding more fuel to the fire. Stories of investors who had lost their life savings began to circulate, increasing the sense of impending disaster.
On Thursday, a lower-cap coin known as "CryptoLuna," which had promised to be the next big revolution in the blockchain ecosystem, completely collapsed after its development team vanished from the face of the internet, taking millions in investments with them. This not only affected CryptoLuna holders but also sowed doubts about the viability of other new cryptocurrencies.
On Friday, in an attempt to regain some stability, several financial regulators from different countries announced proposals for stricter regulations for the cryptocurrency market, which was interpreted as a sign that the days of "unrestricted freedom" in the sector were coming to an end. This caused a final wave of selling, bringing the price of Bitcoin to levels not seen in over a year.
By the end of the week, the cryptocurrency market had lost over a trillion dollars in total value, and while some saw this as a necessary purge that could lead to a more robust and regulated market, for many investors, especially the more novice ones, this drop was a harsh and costly lesson about the volatility and risks of the cryptocurrency world.$XRP $USUAL 
