Bitcoin (BTC) experienced a 6.4% drawdown in the past 24 hours, dropping below the $100,000 threshold and trading at $97,000 as of press time. This decline led to nearly $1.2 billion in liquidations in crypto derivatives, with major altcoins also seeing sharp corrections. The total crypto market cap fell 9% to $3.63 trillion, with Ethereum (ETH) and Solana (SOL) both shedding 10% in value.
Chainlink (LINK) and Dogecoin (DOGE) were among the worst performers, with 17.3% and 18% corrections, respectively. These market downturns are believed to be a result of Federal Reserve Chairman Jerome Powell’s recent statements on the US interest rate policy. Powell hinted at potential rate cuts next year depending on market data and inflation reaching 2%, despite expressing positivity about the US economy’s current state.
The uncertainty surrounding the US economy is further compounded by the looming possibility of a partial government shutdown due to disagreements in Congress over a spending bill and the national debt ceiling. President-elect Donald Trump has rejected a stopgap measure, leading to potential disruptions in government services and federal employee pay if an agreement is not reached by the deadline. Trump’s proposal to eliminate the debt limit entirely has added to concerns about fiscal responsibility.
As of December 19, 2024, Bitcoin remains the top cryptocurrency by market cap, with a 5.64% decrease in price over the past 24 hours. Bitcoin’s market capitalization stands at $1.91 trillion, with a 24-hour trading volume of $105.71 billion. The total crypto market is valued at $3.3 trillion, with a 24-hour volume of $296.39 billion and Bitcoin dominance holding at 57.96%. Investors and traders in the cryptocurrency market are closely monitoring these developments for potential impact on investment strategies and market trends.
