The cryptocurrency Market faced a 4% decline, falling to around $3.8 trillion. Bitcoin’s price dropped 2% to about $104,600, while major altcoins like XRP, Solana (SOL), and Avalanche (AVAX) experienced losses exceeding 5%. This sell-off was triggered by the Federal Reserve’s forecast of fewer interest rate cuts in 2025, leading traders to take profits after a week-long rally. Despite the pullback, many Bitcoin traders remain optimistic, as increasing open interest in futures signals potential for a price rebound. Meanwhile, in related news, an Ohio lawmaker proposed a state-backed Bitcoin reserve, and former BitMEX CEO Arthur Hayes predicted a significant sell-off around Donald Trump’s inauguration in January 2025.
Altcoin Market Update: Solana, XRP, and AVAX Hit Hard After Fed News
The cryptocurrency Market took a hit on Wednesday, with its overall valuation falling by 4% to around $3.8 trillion. Bitcoin, the leading cryptocurrency, dipped by 2% and is now trading at approximately $104,600. Other prominent altcoins, such as XRP, Solana (SOL), and Avalanche (AVAX), faced losses exceeding 5% as profit-taking took center stage.
Market sentiment shifted after the U.S. Federal Reserve indicated that fewer rate cuts might occur in 2025. This news caused a sell-the-news atmosphere among traders, putting an end to a week-long rally that previously saw Bitcoin and other cryptocurrencies achieve significant gains.
XRP saw a notable decrease of 5.2%, dropping below the $2.50 mark. Meanwhile, Solana fell by 5%, stabilizing around $215. Avalanche also experienced a profit-taking retreat with a 5.6% decline, settling at the $47 level.
Despite the recent downturn, some traders maintain an optimistic outlook on Bitcoin’s future. Open interest, which indicates the amount of money in Bitcoin futures, reached a new high of $68.1 billion, suggesting that many are still betting on a price rebound. If Bitcoin can remain above the crucial $100,000 support level, a surge towards the $110,000 resistance could be on the horizon.
In other news, Ohio lawmaker Derek Merrin has proposed a state-backed Bitcoin reserve, aiming to utilize surplus funds as a hedge against the dollar’s depreciation. This initiative aligns with a broader trend among states exploring Bitcoin investments.
Furthermore, Arthur Hayes, former CEO of BitMEX, predicts a potential Market sell-off around Donald Trump’s inauguration in January 2025. He suggests that the growing disconnection between investor expectations and political realities may cause volatility.
In a strategic move, World Liberty Financial, backed by Trump, is working to integrate a new stablecoin to expand its presence in the decentralized finance (DeFi) Market, further demonstrating the evolving landscape of cryptocurrency.
As the Market adjusts to these developments, investors should stay alert and informed about the potential shifts in the crypto landscape.
Tags: cryptocurrency news, altcoin Market, Bitcoin, XRP, Solana, Avalanche, Federal Reserve, DeFi, Ohio Bitcoin Reserve, World Liberty Financial.
What is Bitcoin holding at right now?
Bitcoin is currently holding around $104,000, which is a significant price point for traders and investors.
Why are XRP, AVAX, and Solana traders taking profits?
Traders in XRP, AVAX, and Solana are cashing out on their gains. They might see this as a good time to sell and secure their profits after price increases.
Is it a good time to buy Bitcoin?
Many investors are watching the Market closely. If you believe in Bitcoin’s long-term value, buying now could be considered an option, but always do your research.
What factors affect Bitcoin’s price?
Bitcoin’s price can be influenced by Market demand, news events, regulations, and technological advancements in the crypto space.
Will Bitcoin’s price go up or down in the future?
It’s hard to predict future prices. Bitcoin can be very volatile, so it’s important to stay informed about Market trends and expert opinions.
