Bitcoin Fails to Hold Its Position: Crypto Market Suffering Serious Losses
Date: 2024-12-25 Author: Oliver Abernathy Categories: CRYPTO PAYMENTS
The crypto market faced a serious decline by the start of trading in the US. Against the backdrop of a deterioration in the overall market situation, tokens such as Ether (ETH), Solana's SOL, Cardano's ADA, XRP and BNB lost up to 16% of their value. In turn, the Dogecoin (DOGE) meme coin fell by more than 27%, making it one of the leaders in the decline. The total capitalization of the crypto market has decreased by 11% over the past day.
According to analysts, the negative sentiment of investors intensified after the meeting of the Federal Open Market Committee (FOMC). The forecasts presented by the Fed turned out to be less optimistic than expected. Instead of the expected four rate cuts next year, only two are planned, which disappointed the markets.
"The rate cut itself was expected and already priced in, but the Fed's guidance for next year was a big disappointment. Investors should be cautious until inflation is finally brought under control and there are clearer economic initiatives in the US," Jeff May, COO of BTSE, told CoinDesk.
However, the long-term outlook for cryptocurrencies remains positive. According to May, stimulating monetary and fiscal policies in the US and elsewhere will eventually increase liquidity, which will have a positive impact on the crypto market. "This is especially true for Bitcoin, which is increasingly perceived as a safe haven asset, like gold," the expert added.
Despite the current losses, investors are hopeful that the situation will stabilize in the new year, and the crypto market will be able to return to growth again.
