Cryptocurrency markets have seen significant losses due to the strong dollar and year-end uncertainties, with Ripple (XRP) and other major altcoins seeing the steepest declines.
In the last days of the year, there has been a decline in cryptocurrency markets due to global economic fluctuations. Ripple (XRP), in particular, was the cryptocurrency that suffered the biggest loss in the last week of the year.
WeFi co-founder Maksym Sakharov stated that despite the interest rate cuts in recent weeks, Bitcoin and altcoins have still not reached their price peaks.
According to Sakharov, selling movements in the market are evaluated as sudden reactions to uncertainties regarding macroeconomic policies.
It is also stated that although the Fed has managed to keep inflation at 2%, its preparation for higher interest rates for next year could change the direction of monetary policy and be reflected in the markets.
Macroeconomic Impacts Shake Cryptocurrency Markets
These developments, combined with year-end liquidity crunch and profit taking, have thwarted the expected “Christmas rally” in cryptocurrencies. Bitcoin prices have lost about 4% this month, but have attracted attention by increasing by 47% in the last quarter.
Maksym Sakharov made the following statement to CoinDesk:
“The recent interest rate cut and uncertainties in macroeconomic policies caused the market to react with a sell-off. However, with US President Donald Trump in office, more institutional companies are expected to enter the Bitcoin ecosystem. This suggests that Bitcoin’s price movements can be shaped independently of traditional macroeconomic factors.”