On December 20, 2024, the cryptocurrency market faced significant volatility, with $BTC Bitcoin (BTC) falling below the $100,000 mark. After reaching an all-time high of $108,000 earlier in the week, BTC recorded a drop of approximately 7.2%, trading in the $94,000 range.

This correction was attributed to several factors, including profit-taking by investors and the US Federal Reserve (Fed) signaling that it will reduce its planned interest rate cuts for 2025, which negatively impacted risk assets such as cryptocurrencies.

In addition to Bitcoin, other cryptocurrencies also suffered significant losses. $ETH Ethereum (ETH) fell to $3,200, a 13% loss in the last 24 hours, while Dogecoin (DOGE) saw a 20% drop.

Analysts have highlighted that the recent volatility may be related to the increased supply of BTC in the hands of short-term investors, who tend to react more emotionally to price fluctuations, boosting selling movements in times of correction.

Despite the correction, the general market sentiment remains optimistic, with expectations that BTC may find support at lower levels and potentially resume its upward trajectory. Investors and analysts are keeping an eye on upcoming macroeconomic events and monetary policy decisions that may influence the cryptocurrency market in the coming days.

It is important for investors to remain cautious and closely monitor market movements, considering the high volatility characteristic of the cryptocurrency sector. $SOL