As 2024 comes to a close, the cryptocurrency market is hit by another wave of sell-offs. With ongoing uncertainty in the overall economic outlook and dual pressures from investors taking profits, market confidence has clearly been impacted, leading to a continued decline in Bitcoin, which once fell below $92,000 and hit a monthly low.
Bitcoin has fallen back to its monthly low, and the year-end rally has abruptly stopped.
CoinGecko market data shows that Bitcoin fell to $91,375.39 last night (30th), setting a monthly low, but as of the time of writing, it has rebounded to $92,345, with a daily drop of 1.3%. Not long ago, Bitcoin had triumphantly broken the $100,000 mark, becoming the focus of the market. However, it has now fallen over 14% from the historical high of $108,278 set on December 17.
Ethereum (ETH) also could not escape, dropping 2.1% today (31st) to $3,339, which is an 18% decline from its December peak.
The overall cryptocurrency market also shows a downward trend. The 'CoinDesk 20 Index (which tracks the top 20 mainstream coins by market capitalization, excluding stablecoins and meme coins)' fell by 2.35% today. Among them, Ripple (XRP) and Stellar (XRM) saw the most significant declines, dropping 4.29% and 4.88% respectively; Solana (SOL) and Uniswap (UNI) experienced the smallest declines among mainstream coins, each falling by no more than 1%.
Cryptocurrency concept stocks are also suffering, with selling pressure continuing to rise.
It’s not just the coin prices that are sluggish; even cryptocurrency concept stocks are not escaping the downward fate. MicroStrategy (MSTR) shares fell by 7%, while Coinbase (COIN) dropped by 5.3%. Major Bitcoin mining companies like MARA Holdings (MARA) and Riot Platforms (RIOT) saw declines of over 7%.
The main driver of this wave of sell-offs is that investors are choosing to take profits as the year ends. This year, Bitcoin's cumulative increase has exceeded 117%, attracting long-term holders (Hodlers) to cash out at high points. According to market data, the profit-taking amount for Bitcoin's 7-day moving average reached $1.2 billion, which, although lower than the peak of $4 billion on December 11, is still far above normal levels.
Source: Glassnode Economic pressures exacerbate the situation.
In addition to profit-taking selling pressure, the poor overall economic data in the United States has also cast a shadow over the cryptocurrency market. The latest data from the Chicago Purchasing Managers Index (PMI) shows that the index has fallen to its lowest level since May, suggesting that the growth rate of the U.S. economy may slow further.
Moreover, the Federal Reserve's interest rate policy for next year remains unclear, leading to a strong wait-and-see atmosphere in the market. The Fed has indicated that it will not lower interest rates again before at least March next year, which poses a certain degree of pressure on market liquidity.
There are also variables on the political front. The elected U.S. President Donald Trump will officially take office on January 20 next year, and the market is widely concerned about whether his policies will impact the economy and financial markets.
Expert opinion: 2025 may be a year of both 'challenges and opportunities'.
Regarding the future performance of the cryptocurrency market, Amundsen Davis partner Joe Carlasare stated: 'The market performance in 2024 has been astonishing, but the current signs indicate that the market still needs further adjustments and breathing space.' He further pointed out:
Looking ahead to 2025, I still hold an optimistic view on Bitcoin, but market trends may deviate from the current consensus, as the market is often full of unexpected turns.
The adoption rate of Bitcoin continues to rise, and I believe its performance will largely align with traditional financial markets. If the U.S. economy can avoid significant slowdown, Bitcoin should still perform well, but market fluctuations may be more violent than in 2024.
"Bitcoin once fell below $92,000, hitting a monthly low! Experts warn: Volatility next year will be greater than this year." This article was first published on (Blockcast).