- Ethereum sees a 13% price decline; Solana drops by 18%.
- Holiday season could lead to increased market swings.
- Federal Reserve suggests a slower pace for interest rate reductions in 2025.
The crypto market’s downward trend continues this week.
Bitcoin’s value has decreased by 7.3% in the last day, currently trading at $94,662. Ethereum has also experienced a significant drop, falling 13% to $3,213.
Alternative cryptocurrencies, or altcoins, are facing particularly difficult times. Solana has fallen by 14%, Cardano is down 18%, and XRP, associated with Ripple, has plummeted nearly 13%.
This downturn extends the pessimistic mood that began earlier in the week.
On Wednesday, Federal Reserve Chairman Jerome Powell indicated that interest rate cuts may be implemented at a slower rate in 2025, causing an immediate drop in Bitcoin’s price.
Lennix Lai, Chief Commercial Officer at the OKX crypto exchange, stated to DL News, “The market is reacting noticeably to the Fed’s revised expectations for next year’s rate cuts.”
Despite this recent pullback, the overall cryptocurrency market remains close to its all-time highs, fueled by industry optimism following Donald Trump’s victory in November.
The total market capitalization stands around $3.5 trillion, more than doubling its value from the close of 2023.
‘Priced in’
Lai suggests the current market correction may continue in the near future, with the possibility of ongoing price volatility.
He noted that “Historically, reduced liquidity is common during the upcoming holiday season.”
Lai also believes that Trump’s supportive stance on cryptocurrency is largely already factored into current market prices.
“Even with potential shifts in the US administration, traders should remember that institutional adoption and policy changes are likely to progress at a gradual pace rather than immediately,” Lai concluded.
Crypto market movers
- Bitcoin is currently trading at $94,662, marking a 7.3% decrease in the last 24 hours.
- Ethereum has fallen 13% in the last 24 hours and is currently priced at $3,213.