Attention is now turning to such leading crypto altcoins as XRP, Solana, Ethereum, and others, with growing anticipation for a potential year-end rally to close 2024 on a high note.
Three of the top stories from this week
Bitcoin slips below $100K – Bitcoin’s price sees a sharp correction, with $90K highlighted as a strong support level by FxPro’s Alex Kuptsikevich.
Altcoins tumble – Altcoins fall sharply as the Fed’s hawkish tone triggers sell-offs, which some view as a healthy correction.
Trump taps Bo Hines for crypto council – The former college football player takes charge.
Bitcoin: Weathering the Storm
BTC’s price fell below the $100,000 mark this week, reaching lows of $93,000. This drop followed the Federal Reserve’s decision to cut rates by 25 basis points—a widely expected move—but markets reacted sharply to the Fed’s revised outlook for 2025. Instead of three rate cuts next year, only two are now anticipated, totaling 50 basis points. Inflation expectations were also raised from 2.1% to 2.5% for 2025, adding to market uncertainty.
Check out eToro analyst Sam North’s YouTube video, which provides valuable strategies for managing drawdowns during a bull market.
In the aftermath, Bitcoin’s dominance within the crypto market increased despite the overall market cap falling 7%, from $3.73 trillion to $3.44 trillion. This reflects Bitcoin’s resilience compared to altcoins, which bore the brunt of the downturn.
Historically, Bitcoin’s bull markets have included 20-30% pullbacks, often seen as healthy corrections rather than cause for alarm. Some analysts suggest this correction could bottom near $74,000, presenting a potential “buy-the-dip” opportunity for long-term investors.
Dogecoin sinks, Altcoins slide—are markets poised for a rebound?
The broader crypto market mirrored Bitcoin’s decline but with greater volatility. Ethereum, Solana, Cardano, XRP, and BNB fell by 10-16%, while DOGE plunged 23%.
Ethereum
Ethereum struggled to hold above the psychological $4,000 level and is now consolidating between $3,000 and $4,000. Analysts point to long-term trends, such as decreasing exchange balances and growing spot ETF inflows, as potential catalysts for future growth.
Market Sentiment
The sharp decline in altcoins has shifted sentiment across the crypto landscape. Social media platforms have shown heightened fear and uncertainty, which some analysts argue could set the stage for a market rebound as contrarian signals emerge.
Key Takeaways
Bitcoin’s Drawdown Is Normal: Price corrections of 20-30% are common in bull markets and align with Bitcoin’s historical patterns.
Altcoin Volatility Persists: The broader crypto market remains sensitive to macroeconomic changes, with altcoins often experiencing sharper declines than Bitcoin – in addition to occasional inclines.
Strategic Opportunities: Long-term investors may view this as an accumulation phase, leveraging DCA strategies to mitigate risk.
What’s Next for Crypto Markets?
The question now is whether we’ll see a deeper retracement as the Federal Reserve’s outlook continues to be absorbed.
Could investors seize this dip as a buying opportunity, given the longer-term bullish outlook?
Potential catalysts and tailwinds for the asset class include:
Spot ETFs for Bitcoin and Ethereum
Central banks potentially owning Bitcoin
Favourable global regulatory changes in 2025
Despite this week’s turbulence, crypto remains a young and rapidly evolving market. For those with a long-term perspective, these corrections are moments to pause, strategize, and prepare for the next phase of growth.
Stay tuned for further updates as the market evolves—and don’t forget to check out Sam North’s video for actionable insights!
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