
Hold onto your hats, folks, because the wild ride of the crypto rollercoaster is in full swing! The total crypto market cap took a nosedive, slipping below the $3.6 trillion mark for a hot minute, sending shockwaves through the crypto universe.
The Federal Reserve’s surprising take on rate cuts has thrown a wrench into the works for riskier assets like crypto. Bitcoin took a whopping hit, nosediving over eight grand in the blink of an eye, dropping to just under $99,000. Altcoins didn’t escape unscathed either, with big names like XRP, AVAX, DOGE, and LINK taking a serious tumble.
Just before this crash, Bitcoin was on a major high. It had climbed an impressive fourteen grand from December 10 to December 17, smashing through the $100,000 barrier and peaking at a new all-time high of over $108,000. But then, the focus shifted to the much-anticipated US Federal Reserve’s meeting. Although the Fed trimmed interest rates by 25 basis points, Chairman Jerome Powell’s comments sent the crypto market spiraling downwards. He hinted at possibly halting rate cuts next year and cast doubt on Trump’s bold claim that the US could start buying BTC.
Bitcoin’s value plummeted. After retreating from its peak to $105,000, it took another hit, sliding to just under $99,000. While it has clawed back some ground, sitting above $101,000, it's still more than 2% down for the day. Its market cap has shrunk to $2.010 trillion, although its dominance over altcoins has surged to 54.6%.
The altcoin scene was even more dramatic. Many faced double-digit drops, and while they've managed to regain a bit of lost territory, they're still deep in the red. Coins like XRP, DOGE, ETH, ADA, AVAX, LINK, SHIB, and others are licking their wounds.
But don't despair just yet! Our friends at Santiment believe a few of these coins have a fighting chance to bounce back with impressive gains. Even so, the total crypto market cap saw a hefty drop, from over $3.950 trillion to under $3.6 trillion in the blink of an eye yesterday evening.
Stay tuned, crypto fans. The market is unpredictable, and the next big wave might be just around the corner!