Bitcoin (BTC) and other cryptocurrencies suffered a bloodbath over the weekend as markets dropped significantly. In just over 24 hours, BTC dropped from around $108,000 to its current level of $95,000, as the Fed’s announcement about reducing rate cuts in 2025 hit the market hard. The drop led to BTC posting its first weekly decline since Donald Trump won the elections, with the asset down 9% over the past week.
Almost all cryptocurrencies registered double-digit losses over the weekend, with BTC’s losses dwarfed by those of Ethereum (ETH), down nearly 15% over the past week as it slipped below $3,500. Solana (SOL) is down almost 3% in the past 24 hours and nearly 16% over the past week thanks to substantial losses over the weekend. Meanwhile, Dogecoin (DOGE) is down almost 21% over the past week. The crypto market cap is down just over 1.1% and currently sits at $3.3 trillion.
Major Crypto Bloodbath
The cryptocurrency market faced one of its biggest meltdowns in recent memory with $1.2 billion in liquidations as prices tumbled across the board. As a result, Bitcoin (BTC) fell from an all-time high of over $108,000 to below $95,000. Other major cryptocurrencies, including Ethereum (ETH), Solana (SOL), and Dogecoin (DOGE) registered double-digit losses as the crypto market took a bearish turn. The downturn started after Federal Reserve Chair Jerome Powell’s comments after the FOMC meeting.
The markets, slowing down after a huge rally since Trump’s election, tumbled after Powell and the Fed took a hawkish stance and raised concerns about inflation. Powell also said the Fed would reduce rate cuts in 2025 from the forecasted four to two, triggering a significant selloff.
Bitcoin (BTC)’s sharp fall
Bitcoin (BTC) fell sharply over the weekend after the Federal Reserve’s warning about inflation. As a result, around $500 billion was wiped out from the market. BTC dropped around 10% but was dwarfed by losses by Ethereum (ETH), Solana (SOL), and Dogecoin (DOGE). Federal Reserve Chair Jerome Powell warned that interest rates will not come down as quickly as expected and reduced the number of planned interest rate cuts to just two in 2025. BTC is currently trading around the $95,500 level.
Meanwhile, Cathie Wood, the founder of Ark Invest Capital, has reiterated her stance on BTC’s price. Wood predicted BTC would touch $1 million by 2030, giving BTC a market capitalization of $20 trillion.
“[Bitcoin] is becoming even more scarce than gold. The difference between gold and bitcoin is, when the gold price goes up, as it has, production goes up, the rate of increase in the supply goes up—that can not happen with bitcoin.”
Analysts expect BTC and other cryptocurrencies to be prone to wild price swings over the holidays and the next few weeks. James Tolenado, Chief Operating Officer at Unity Wallet, stated,
“In terms of what is coming over the holiday period, the first rule of Bitcoin is that it is always volatile in the same way water is always wet. Its behavior is always mixed, and there is zero discernible pattern at the end of the year and going into the next. Sometimes, the price rises in the new year, and at other times it falls. So, historically, we can say that bitcoin exhibits typically mixed behavior over Christmas and New Year.”
Coinbase, Kraken Donate $1M Towards Trump Inauguration
Several cryptocurrency firms, including Coinbase and Kraken, have donated towards Donald Trump’s inauguration. Coinbase and Kraken have donated $1 million each to the Trump-Vance inaugural committee. The committee is organizing events surrounding the January 20 swearing-in ceremony, including galas, parades, and dinners. Ripple has also pledged $5 million in XRP to the committee. Kara Calvert, Coinbase’s VP of US Policy, stated,
“Coinbase is committed to working with the Administration and both sides of the aisle to create regulatory clarity for crypto. We’re eager to work with the most pro-crypto Administration in U.S. history as we build the future of crypto in America.”
MoonPay has also pledged to donate to the inaugural committee, although the exact amount was not disclosed.
Bitcoin (BTC) Price Analysis
Bitcoin (BTC) dipped below $96,000 over the weekend and fell to an intraday low of $92,072 on Friday. The drop comes after BTC surged past $100,000 to set a new all-time high, as the asset witnesses wild price swings. Analysts have said the price swings are the result of traders locking in profits after BTC crossed $100,000. BTC has been highly bullish since Trump’s election victory but experienced its first weekly decline since after markets turned bearish. BTC’s decline can also be attributed to statements by Federal Reserve Chair Jerome Powell, who announced rate cuts would be reduced in 2025. Powell also stated the Fed is prohibited from holding BTC or other cryptocurrencies as reserve assets
Despite BTC’s slump, analysts are confident about a recovery, with some suggesting it could go past $150,000 in 2025 thanks to growing institutional interest and favorable policies under the Trump administration. However, the weekend’s decline led to $258 million in liquidations across derivatives markets, including $30 million in long positions.
Sentiment around BTC changed after it set a new all-time high on Tuesday. The asset started the previous week on a positive note, rising 1.50% to $105,746 on Monday. BTC continued to push higher on Tuesday, setting a new all-time high as it raced to $108,269. However, sentiment around BTC changed on Wednesday as the price plummeted almost 6% to $100,195. Buyers attempted a recovery on Thursday as BTC rose to $102,792. However, they lost momentum after reaching this level, allowing sellers to take control. As a result, BTC fell below the 20-day SMA and $100,000, registering a drop of 2.49% and settling at $97,703.
Source: TradingView
BTC fell to an intraday low of $92,072 on Friday as it slipped below key support levels. However, it recovered from this level to register a marginal increase and settle at $98,124. The weekend saw bearish sentiment return as BTC fell to $97,505 after a marginal decline. Sunday saw a jump in selling activity as BTC dropped by 2.26% to $95,303, ending the weekend negatively. The current session sees BTC marginally up as buyers try to build momentum and push towards $100,000.
On the other hand, if sellers retake control, BTC could drop below the 50-day SMA and go as low as $90,000.
Ethereum (ETH) Price Analysis
Ethereum (ETH)’s recent decline has seen the world’s second-largest cryptocurrency slip below $3,500 after surging past $4,000 last week. ETH reached an intraday high of $4,106 last Monday as bullish sentiment peaked. ETH dropped on Tuesday instead of consolidating above this level, falling by 2.33% to go below $4,000 and settle at $3,892. Bearish sentiment intensified on Wednesday as ETH dropped almost 7%, going below the 20-day SMA and settling at $3,625. Buyers attempted a recovery on Thursday as ETH reached an intraday high of $3,762. However, it lost momentum after reaching this level, dropping almost 6% to go below the $3,500 level and settling at $3,415.
Source: TradingView
ETH plunged to an intraday low of $3,096 on Friday, falling below the 50-day SMA as sellers attempted to drive it below $3,000. However, it recovered from this level to climb above the 50-day SMA, reclaim $3,000, and settle at $3,470. Any hope for a sustained recovery was dashed over the weekend as ETH dropped almost 4% on Saturday to go below the 50-day SMA and settle at $3,336. ETH continued to decline on Sunday after failing to mount a recovery, dropping 1.71% and settling at $3,279. The current session sees ETH marginally up as buyers attempt a recovery.
Buyers will look to build momentum and push ETH above the 50-day SMA. If they are successful, ETH will target the $3,500 level. However, if sellers retake control, ETH could drop to $3,000 before seeing a recovery.
Solana (SOL) Price Analysis
Solana (SOL) is looking to recover after dropping to its support level of $180 over the weekend. SOL suffered a monumental decline after turning bearish on Wednesday, with the altcoin down almost 16% over the past week. SOL started the week in the red in an indication of things to come, dropping 3.55% to $216. However, it recovered on Tuesday, rising to an intraday high of $228 before settling at $223, an increase of 3.23%. Bearish sentiment returned Wednesday as SOL dropped by 7.50% to go below the 50-day SMA and settle at $206. Sellers retained control on Thursday as SOL slipped below $200 after a drop of just over 6% and settled at $193.
Source: TradingView
SOL plummeted to an intraday low of $175 on Friday, briefly falling below the $180 support level. However, it recovered to thwart selling pressure and registered a marginal increase to settle at $194. The recovery was short-lived as SOL was back in the red on Saturday after a failed attempt to reclaim $200. SOL reached an intraday high of $202 before turning bearish as sellers took control. As a result, SOL dropped almost 7% and fell to $181, just above the $180 support level. Buyers attempted a recovery on Sunday as SOL rose to an intraday high of $187 before losing momentum. As a result, SOL registered a marginal decline and settled at $180. SOL has recovered during the current session but is witnessing significant volatility, having dropped to an intraday low of $176 and an intraday high of $187 before settling at $181, a marginal increase.
Dogecoin (DOGE) Price Analysis
Bearish sentiment around Dogecoin (DOGE) intensified last week as it plummeted below the 50-day SMA and a key support level. DOGE started the week in the red, dropping just over 1% on Monday and settling at $0.401. Sellers retained control on Tuesday as the price fell just over 2% to go below $0.40 and settle at $0.393. Bearish sentiment intensified on Wednesday as DOGE dropped over 9% and settled at $0.357, just above the $0.30 support level. DOGE registered a more substantial drop on Thursday, falling over 12% to slip below the 50-day SMA and a key support level to settle at $9.313.
Source: TradingView
DOGE plummeted to a low of $0.262 on Friday as sellers attempted to drive it below $0.30. However, it recovered from this level to reclaim $0.30 and register a marginal increase to settle at $0.317. Saturday began with DOGE surging to $0.35 before losing momentum. As a result, it dropped back and settled at $0.319, registering only a marginal increase. However, it was back in the red on Sunday dropping by 2.47% and settling at $0.312. The current session sees DOGE marginally down as sellers attempt to push it below $0.30.
Ripple (XRP) Price Analysis
Ripple (XRP) has been trading downwards since hitting an intraday high of $2.72 on Tuesday. After reaching this level, XRP fell back, dropping to $2.56, ultimately registering an increase of 3.38%. However, sentiment changed on Wednesday as XRP plummeted over 10%, going below the 20-day SMA and settling at $2.30. Buyers attempted a recovery as XRP rose to an intraday high of $2.43. However, it could not go higher and fell by 3.10% to settle at $2.23. Bearish sentiment intensified on Friday as XRP dropped to an intraday low of $1.95. However, it recovered from this level to register an increase of 1.83%, settling at $2.27.
Source: TradingView
XRP could not sustain its recovery and fell back in the red on Saturday, dropping almost 2% and settling at $2.23. Sellers retained control on Sunday, pushing XRP down by 1.58% to $2.20. XRP has remained in the red during the current session, down 1.27% and trading at $2.17.
Aptos (APT) Price Analysis
Aptos (APT) has plummeted over the past week and is down a staggering 35% in the past seven days as bears tighten their grip. APT’s decline began on Tuesday when it fell over 7%, going below the 20-day SMA and settling at $12.92. Sellers retained control on Wednesday as the price dropped 8.2% to slip below the 50-day SMA and settle at $11.85. APT rose to an intraday high of $12.72 on Thursday as buyers attempted a recovery. However, they lost momentum after reaching this level and fell back, dropping just over 4% to $11.36. APT experienced considerable volatility on Friday as buyers and sellers struggled to establish control. Sellers ultimately gained the upper hand and pushed APT down by 4.31% to $10.87.
Source: TradingView
Bearish sentiment intensified substantially on Saturday as APT plummeted by 12.46% to go below $10 and settle at $9.51. Sellers retained control on Sunday, pushing APT down by 3.16% to $9.21. The current session sees APT down by 1.42% and trading at $9.10 as sellers look to drive the price below $9.
Celestia (TIA) Price Analysis
Celestia (TIA) dropped to a key support level on Monday when it fell to $6.58. With sellers retaining control on Tuesday, TIA dropped below this level and the 50-day SMA to $6.26, registering a fall of almost 5%. TIA fell below $6 and the 200-day SMA on Wednesday after a drop of 8.20% and settled at $5.74. Bearish sentiment intensified on Thursday as TIA dropped almost 11% and settled at $5.12. Sellers drove the price to an intraday low of $4.34 on Friday. However, TIA recovered from this level to register an increase of 1.86%, settling at $5.22.
Source: TradingView
Bearish sentiment returned over the weekend as the price dropped below $5 on Saturday, dropping almost 6% after a failed attempt to reclaim $6. Sellers retained control on Sunday as TIA registered a marginal decline and ended the weekend at $4.90. The current session sees TIA up by 1.45% as it attempts to reclaim $5.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
Source: https://cryptodaily.co.uk/2024/12/crypto-price-analysis-12-23-bitcoin-btc-ethereum-eth-solana-sol-dogecoin-doge-ripple-xrp-aptos-apt-celestia-tia