In 2024, the cryptocurrency world has witnessed many fluctuations and emerging trends that have significantly impacted how investors participate in this market. Recently, articles and studies have highlighted several notable issues in the cryptocurrency field, from financial agency policies to the development of altcoins.
One of the most important economic events is the Federal Reserve's decision to cut the federal funds rate by 25 basis points, bringing it down to a range of 4.25% to 4.50%. This marks the third consecutive cut this year, with a total reduction of 100 basis points since September. Although this move was anticipated, recent economic data shows solid growth and rising inflation. As a result, analysts are paying attention to the Fed's new economic forecasts, indicating that the funds rate could drop to 3.9% by the end of 2025.
The Fed's rate cut not only has a profound impact on the economy but also significantly affects the cryptocurrency market. Immediately following the announcement, Bitcoin's price dropped nearly 5%, while many other altcoins suffered even larger declines. This illustrates the complex relationship between monetary policy and the crypto market.
In the altcoin market, Fartcoin - a memecoin developed on the Solana platform and lacking practical utility - has attracted attention by rising up to 113% in the past 30 days. On December 18, Fartcoin surpassed a market capitalization of 1 billion USD, even as the altcoin market was experiencing a significant decline due to the Fed's decision.
From 8:20 to 9:00 UTC on the same day, Fartcoin's price surged about 21% to $1.02 but then quickly adjusted down by about 16% to $0.83. Several other prominent altcoins also recorded significant losses. Some investors even jokingly remarked that Fartcoin's growth reflects the trend of seeking safer havens in high-risk markets.
Fartcoin, launched on October 24, is a clear example of the volatility present in the cryptocurrency market today. Although its instability has sparked much controversy, it also represents an intriguing feature of the crypto market - a place that is constantly evolving and challenging all traditional trading rules.
