Bitcoin (BTC) and Other Cryptocurrencies Suffer Major Losses
Over the weekend, the cryptocurrency market experienced a significant downturn, resulting in substantial losses for major coins like Bitcoin (BTC) and Ethereum (ETH).
In just over 24 hours, BTC plummeted from approximately $108,000 to its current level of $95,000, as concerns surrounding potential interest rate cuts in 2025 weighed heavily on the market. This decline marked BTC's first weekly decrease since former President Donald Trump's election victory.
Ethereum (ETH) and Other Altcoins Hit
Almost all cryptocurrencies saw double-digit losses over the weekend, with ETH's losses eclipsing BTC's. ETH fell by nearly 15% over the past week, slipping below $3,500. Solana (SOL) and Dogecoin (DOGE) also experienced substantial losses, dropping by 16% and 21% respectively. As a result, the overall crypto market capitalization decreased by over 1%, currently sitting at $3.3 trillion.
Major Crypto Bloodbath
The cryptocurrency market faced one of its most severe meltdowns in recent memory, with over $1.2 billion in liquidations as prices plummeted across the board. BTC fell from an all-time high of $108,000 to below $95,000, followed by declines in ETH, SOL, and DOGE. This downturn was triggered by comments made by Federal Reserve Chair Jerome Powell after a recent FOMC meeting.
Powell's hawkish stance and concerns about inflation, coupled with a forecasted reduction in interest rate cuts from four to two in 2025, sparked a significant sell-off in the markets.
Bitcoin's (BTC) Sharp Fall
Following the Federal Reserve's warning on inflation, BTC saw a sharp decline over the weekend, wiping out approximately $500 billion from the cryptocurrency market. BTC fell by around 10%, but its losses were dwarfed by those of ETH, SOL, and DOGE. Powell's announcement that interest rates would not decrease as quickly as expected and the reduced number of planned interest rate cuts to just two in 2025 contributed to the decline. BTC is currently trading around $95,500.
Cathie Wood's Predictions
Despite the recent downturn, Cathie Wood, founder of Ark Invest Capital, reiterates her belief in BTC's future value. Wood predicts that BTC could reach $1 million by 2030, giving it a market capitalization of $20 trillion. She emphasizes BTC's increasing scarcity compared to gold, stating that unlike gold, BTC's production does not increase as its price rises.
Analysts anticipate that BTC and other cryptocurrencies will experience significant price swings during the holidays and in the coming weeks.
Coinbase and Kraken Donate to Trump Inauguration
Several cryptocurrency firms, including Coinbase and Kraken, have made donations towards former President Donald Trump's inauguration. Coinbase and Kraken each contributed $1 million to the Trump-Vance Inaugural Committee, which organizes inauguration-related events, 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 that Coinbase aims to collaborate with the Trump administration to establish regulatory clarity for cryptocurrencies.
MoonPay has also indicated its support for the inaugural committee, although the exact amount of their donation is undisclosed.
Bitcoin (BTC) Price Analysis
BTC dipped below $96,000 over the weekend, hitting an intraday low of $92,072 on Friday. This drop followed BTC's surge past $100,000, showcasing the asset's volatility. Analysts attribute the price swings to traders locking in profits after BTC crossed $100,000.
BTC's recent decline can also be attributed to Federal Reserve Chair Jerome Powell's comments on interest rate cuts in 2025. Powell also stated that the Fed is prohibited from holding BTC or other cryptocurrencies as reserve assets.
Despite the recent slump in BTC, analysts remain optimistic about its recovery, with some predicting its value could exceed $150,000 in 2025 due to growing institutional interest and favorable policies under the Trump administration.
Ethereum (ETH) Price Analysis
ETH's recent decline has seen the world's second-largest cryptocurrency fall below $3,500 after briefly surpassing $4,000 last week. ETH reached an intraday high of $4,106 last Monday, but failed to consolidate above this level and fell below $4,000.
Bearish sentiment intensified on Wednesday as ETH dropped by approximately 7%, falling below the 20-day SMA. ETH's recovery attempt on Thursday was met with resistance, and it plunged to an intraday low of $3,096 on Friday, briefly falling below the 50-day SMA. However, ETH recovered and settled above $3,000.
Solana (SOL) Price Analysis
SOL is seeking to recover after approaching its support level of $180 over the weekend. SOL suffered a significant decline after turning bearish on Wednesday, resulting in an overall loss of 16% over the past week.
SOL started the week in the red, dropping by 3.55% to $216. However, it recovered on Tuesday, reaching an intraday high of $228 before settling at $223. Bearish sentiment returned on Wednesday, leading to a 7.50% decrease and a drop below the 50-day SMA.
SOL plunged to an intraday low of $175 on Friday, but recovered and settled at $194. SOL's recovery attempt on Saturday was met with resistance, and it ended the weekend at $180.
Dogecoin (DOGE) Price Analysis
Bearish sentiment around DOGE intensified last week as it fell below the 50-day SMA and a key support level. DOGE started the week in the red and dropped by over 12% on Thursday, falling below the 50-day SMA and a key support level.
DOGE plummeted to a low of $0.262 on Friday but recovered and settled at $0.317. Saturday began with DOGE surging to $0.35 before losing momentum and settling at $0.319. However, it fell by 2.47% on Sunday and settled at $0.312.
Ripple (XRP) Price Analysis
XRP has been trading downwards since hitting an intraday high of $2.72 on Tuesday. After reaching this level, XRP fell back and closed at $2.56, registering a gain of 3.38%. However, sentiment changed on Wednesday as XRP plummeted over 10%, falling below the 20-day SMA and settling at $2.30.
XRP's recovery attempt on Thursday was met with resistance, and it fell to an intraday low of $1.95 on Friday. However, it recovered and settled at $2.27. XRP has remained in the red during the current session, trading at $2.17.
Aptos (APT) Price Analysis
APT has experienced a significant decline over the past week, dropping by 35%. APT's decline commenced on Tuesday when it fell over 7%, falling below the 20-day SMA and settling at $12.92. APT fell below the 50-day SMA on Wednesday and settled at $11.85.
Bearish sentiment intensified on Saturday as APT plummeted by 12.46% to below $10, settling at $9.51. Sellers retained control on Sunday, pushing APT down by 3.16% to $9.21. APT continues to trade downwards during the current session.
Celestia (TIA) Price Analysis
TIA dropped below a key support level on Monday, reaching $6.58. TIA fell below the 50-day SMA on Tuesday and the 200-day SMA on Wednesday, settling at $5.74.
Bearish sentiment intensified on Thursday as TIA dropped by nearly 11% and settled at $5.12. TIA's recovery attempt on Friday was met with resistance, and it settled at $5.22. Bearish sentiment returned over the weekend, with TIA falling by 6% on Saturday and 1.58% on Sunday.
Disclaimer
This article provides informational purposes only and should not be construed as legal, tax, investment, financial, or other advice.
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