The cryptocurrency market has faced a significant decline in the past few days. Most assets among the top 100 projects by market capitalization are trading in the red on the weekly chart. The global cryptocurrency market capitalization has decreased by 1.5% in the past 24 hours to $3.47 trillion.
Why is the Cryptocurrency Market Stagnant?
The latest market downturn may be due to the Federal Reserve's hawkish monetary stance. The Fed recently announced that it would only have two interest rate cuts in 2025 instead of three. Interest rate cuts typically lead investors to take on more risk as borrowing becomes easier.
The cryptocurrency market may quickly recover after President-elect Donald Trump announces more optimistic policies. Trump has appointed Bo Hines as the executive director of the upcoming Presidential Digital Asset Advisory Council. This council is also known as the 'Cryptocurrency Council.'
3 Notable Cryptocurrencies in the New Year 2025
1. Solana (SOL)
Solana (SOL) is one of the best-performing cryptocurrencies over the past year. This asset has shown remarkable growth since its collapse in 2022 following the FTX crash. The SOL network has also seen tremendous growth this year. Many new memecoins based on SOL have taken the cryptocurrency community by storm. SOL could begin to rise as we enter the new year.
2. Ripple (XRP)
Ripple's XRP token is another cryptocurrency with significant growth potential. This asset has surpassed the $2 mark for the first time in seven years. Ripple has also settled its lawsuit with the SEC. Both of these developments could pave the way for XRP to reach new highs. XRP may start another price surge early next year.
3. Dogecoin (DOGE)
DOGE has experienced a strong price surge following Donald Trump's victory. Trump has also approved the establishment of the Department of Government Efficiency (DOGE). The launch of this department could lead to a significant price increase for the meme cryptocurrency. DOGE could accelerate in early 2025 as we approach Trump's inauguration.
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