Bitcoin, crypto dumps – will we get a Christmas miracle or lump of coal?
After shooting past $100K, Bitcoin has hit a rough patch and brought the crypto market down with it.
With Christmas around the corner, cryptocurrency investors waiting for a visit from Satoshi Santa may have to wait a little longer.
Bitcoin has dropped back to US$100,000 for the first time since shooting past the six-figure mark earlier this month.
While December has often been a good month for Bitcoin and crypto in general1, a wider market sell off has taken the shine off what has been a stellar year for Bitcoin.
Despite surging to more than US$108,000 in recent days, Bitcoin has today dipped more than 5%, leading to further drops for already-stuttering altcoins.
Dogecoin is now down 14% in the last week, with Cardano, Avalanche and Shiba Inu also recording double-digit drops.
Even Solana, one of 2024's standout performers, has felt the crunch, dropping more than 9% in the last 7 days.
Why are we dropping?
The US Federal Reserve has announced the outcome of its December meeting as it continues to battle stubborn inflation, which rose to 2.7% in November.
Despite the Fed actually dropping interest rates by a further 25 basis points, chairman Jerome Powell hinted at rate cuts slowing in 2025, a potential roadblock for risk-on assets like cryptocurrencies and even stocks.
Where to next?
Despite the dip, the outlook remains broadly positive for crypto in 2025.
The incoming Trump administration will be the most pro-crypto in history, with President-elect Donald Trump recently recommitting to establishing a Bitcoin strategic reserve.
But whether the markets recover in time for Christmas is another story. Will Santa's sack be carrying digital gold... or a lump of coal?
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