Crypto traders hoping for a Santa rally have instead lumps of coal in their stockings.
Bitcoin has slumped 7% in the past seven days, declining to $95,500.
Ethereum is down 10%, trading for $3,300, while Ripple’s XRP, and Solana posted similar-sized drops.
The cryptocurrency market has been gripped by a bearish sentiment after the Federal Reserve suggested a hawkish outlook for 2025.
Traders began to de-risk their portfolios, which sent Bitcoin downwards from its record $108,000.
However, trading volume over the holiday season has remained relatively low — meaning that minor trades can have outsized impact.
This also signals traders are focused mostly on profit-taking, and not aggressive selling, said crypto investor Scott Melker in his latest newsletter.
Fantasising
Experts foresee bullish prices heading into next year.
Most crypto pontificators see a higher price than Bitcoin’s current level. .
K33 Research predicts the price hitting at least $146,000, while Fundstrat’s Tom Lee anticipates a quarter of a million per coin.
Standard Chartered has touted $200,000, as have Bitwise and AllianceBernstein.
Donald Trump takes office on January 20, and every crypto investor’s eyes will be potential policy. His adviser picks have so far been predominantly pro-crypto, with a crypto PAC darling, and a Fed critic among his top choices.
Trump has even signalled openness to a US Bitcoin strategic reserve.
Or will he take his time to help crypto grab its footing, delaying the bullish momentum?
Pedro Solimano is a markets correspondent based in Buenos Aires. Got a tip? Email him at psolimano@dlnews.com.
