December 11 Price Analysis: SPX, DXY, BTC, ETH, BNB, XRP, SOL, ADA, DOGE, AVAX

Bitcoin's sharp price correction has surprised investors, but is it a sign that more declines are coming?

Bitcoin $BTC €38,888 closed last week with gains of 9.55%, but started the new week on a weak note, falling near $40,500. Bitcoin's sharp correction also caused sell-offs in several altcoins.

The sharp drop does not change the trend in bitcoin and altcoins, as corrections are an integral part of any bullish trend. Typically, vertical rises are followed by strong pullbacks, which eliminate weaker investors and allow long-term investors to buy more at lower levels.

The corrections are unlikely to last due to several bullish catalysts in 2024. One or more bitcoin exchange-traded funds are expected to receive regulatory approval in January, which could change the outlook. This will be followed by the bitcoin halving in April and finally, expectations of a rate cut by the US Federal Reserve could boost risky assets. Goldman Sachs anticipates the Fed will begin cutting rates in the third quarter of 2024.