The cryptocurrency Market experienced a 4% decline, dropping to around $3.8 trillion, as traders reacted to the U.S. Federal Reserve’s announcement of fewer rate cuts expected in 2025. Bitcoin fell 2% to approximately $104,600, while major altcoins like XRP, Solana, and Avalanche saw losses exceeding 5%. This sell-off followed a week of strong gains for Bitcoin and other cryptocurrencies. Despite the price drop, many traders remain optimistic about Bitcoin’s short-term prospects. Meanwhile, Ohio is considering a state-backed Bitcoin reserve, and former BitMEX CEO Arthur Hayes predicts a significant sell-off around Trump’s inauguration due to mismatched expectations in crypto policy.
The cryptocurrency Market faced a dip on Wednesday, with its overall valuation decreasing by 4%, bringing it down to approximately $3.8 trillion. This decline was felt across the board, as Bitcoin’s value dropped 2%, stabilizing around $104,600. Additionally, major altcoins like XRP, Solana (SOL), and Avalanche (AVAX) each saw losses exceeding 5%.
Market reactions intensified following projections from the Federal Reserve, which indicated fewer interest rate cuts anticipated for 2025. Traders, likely looking to lock in profits, sparked a sell-off that curtailed a week-long rally, where Bitcoin, Ripple, and Avalanche had experienced notable gains since December 10.
In detail, XRP’s price fell 5.2% to below the $2.50 mark, coinciding with heightened Market enthusiasm after the launch of the RLUSD stablecoin. Solana’s price retraced by 5%, finding some support near the $215 level, while Avalanche faced a 5.6% decline, settling around $47.
Despite this downturn, Bitcoin traders are maintaining a positive outlook for the near future. Although prices have dipped, there has been a marked increase in Bitcoin’s open interest, signaling continued confidence from speculative traders. If Bitcoin can sustain its position above the $100,000 psychological support level, analysts suggest it may be primed for a breakout towards the $110,000 resistance.
In other news within the crypto sphere, Ohio Representative Derek Merrin has proposed the Ohio Bitcoin Reserve Act, which could enable the state to invest surplus funds in Bitcoin, potentially protecting public funds from USD devaluation.
Moreover, former BitMEX CEO Arthur Hayes has warned of an impending Market sell-off surrounding Donald Trump’s inauguration, hinting at a possible correction as investors temper their expectations for future crypto policies.
Additionally, World Liberty Financial, supported by Trump, is moving to integrate the sUSDe stablecoin into its decentralized finance (DeFi) ecosystem, aiming to stimulate liquidity and attract new users as part of its growth strategy.
As the cryptocurrency landscape evolves, traders and investors are watching closely for both potential opportunities and challenges in the coming weeks.
Tags: Cryptocurrency, Bitcoin, Altcoins, XRP, Solana, Avalanche, Federal Reserve, Crypto Market, Ohio Bitcoin Reserve Act.
What is happening with Bitcoin holding $104K?
Bitcoin has reached a price of $104,000. This surge in value is catching everyone’s attention.
Why are XRP, AVAX, and Solana traders taking profits?
Traders of XRP, AVAX, and Solana are selling their coins to make money, as their prices have also risen recently.
Is it a good time to invest in Bitcoin?
Many people think that investing in Bitcoin might be a good idea now, especially since it has reached such a high price. However, it’s always smart to do your own research first.
What should I know about the cryptocurrency Market right now?
The cryptocurrency Market is very volatile, which means prices can change quickly. It’s important to stay updated on trends and news that could affect prices.
How can I keep track of Bitcoin and other cryptocurrencies?
You can follow cryptocurrency news websites, use apps for real-time price tracking, or subscribe to newsletters to get the latest updates on Bitcoin and other coins.
