Massive crypto price correction after fed’s hawkish stance
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The crypto market experienced a sharp selloff following the Federal Reserve's cautious guidance on rate cuts. Bitcoin plunged below $100,000, losing over $8,000 in a day, while altcoins like XRP, DOGE, and AVAX suffered double-digit declines. Although BTC has recovered above $101,000, the broader market remains in the red, with total crypto market capitalization dropping to $3.6 trillion.
Bitcoin’s Decline: A Hawkish Fed and Market Reaction
Bitcoin reached a new all-time high of $108,000 on December 17, following a strong rally earlier in the month. However, the Fed’s FOMC meeting triggered a rapid reversal.
Despite delivering an expected 25-basis-point rate cut, Fed Chair Jerome Powell’s remarks about potentially halting rate reductions next year spooked markets. Additionally, Powell dismissed the possibility of U.S. government involvement in Bitcoin purchases under President-elect Trump, further dampening sentiment.
As a result, BTC retraced from $105,000 to under $99,000, a loss of over $8,000 in a single day. Although Bitcoin has since rebounded to $101,000, it remains down more than 2% for the day, with its market cap shrinking to $2.010 trillion.
Altcoins Hit Harder in Broad Market Selloff
The broader altcoin market saw even steeper declines:
XRP, DOGE, ETH, ADA, AVAX, LINK, SHIB, and others suffered double-digit losses. Many assets have partially recovered but remain deeply in the red. Market data provider Santiment highlighted four altcoins with potential for a strong rebound, though the current sentiment remains bearish. The total crypto market cap fell from over $3.950 trillion two days ago to below $3.6 trillion during yesterday’s lows.
Market Outlook: BTC Dominance Surges
Bitcoin’s dominance over altcoins increased to 54.6%, as investors sought refuge in the flagship cryptocurrency amid heightened uncertainty. While BTC’s recovery above $101,000 offers some hope, sustained bearish sentiment from the Fed and broader macroeconomic pressures could keep crypto markets volatile in the near term.
Market Call:
Investors should monitor Bitcoin’s key levels:
Support: $99,000 and $95,000.
Resistance: $105,000 and $108,000.
For altcoins, the focus shifts to identifying assets with strong fundamentals for potential rebounds. Caution is advised as markets digest the Fed's outlook and macroeconomic developments, with attention now on the upcoming PCE inflation data for further cues.
Bitcoin’s Decline: A Hawkish Fed and Market Reaction
Bitcoin reached a new all-time high of $108,000 on December 17, following a strong rally earlier in the month. However, the Fed’s FOMC meeting triggered a rapid reversal.
Despite delivering an expected 25-basis-point rate cut, Fed Chair Jerome Powell’s remarks about potentially halting rate reductions next year spooked markets. Additionally, Powell dismissed the possibility of U.S. government involvement in Bitcoin purchases under President-elect Trump, further dampening sentiment.
As a result, BTC retraced from $105,000 to under $99,000, a loss of over $8,000 in a single day. Although Bitcoin has since rebounded to $101,000, it remains down more than 2% for the day, with its market cap shrinking to $2.010 trillion.
Altcoins Hit Harder in Broad Market Selloff
The broader altcoin market saw even steeper declines:
XRP, DOGE, ETH, ADA, AVAX, LINK, SHIB, and others suffered double-digit losses. Many assets have partially recovered but remain deeply in the red. Market data provider Santiment highlighted four altcoins with potential for a strong rebound, though the current sentiment remains bearish. The total crypto market cap fell from over $3.950 trillion two days ago to below $3.6 trillion during yesterday’s lows.
Market Outlook: BTC Dominance Surges
Bitcoin’s dominance over altcoins increased to 54.6%, as investors sought refuge in the flagship cryptocurrency amid heightened uncertainty. While BTC’s recovery above $101,000 offers some hope, sustained bearish sentiment from the Fed and broader macroeconomic pressures could keep crypto markets volatile in the near term.
Market Call:
Investors should monitor Bitcoin’s key levels:
Support: $99,000 and $95,000.
Resistance: $105,000 and $108,000.
For altcoins, the focus shifts to identifying assets with strong fundamentals for potential rebounds. Caution is advised as markets digest the Fed's outlook and macroeconomic developments, with attention now on the upcoming PCE inflation data for further cues.