Why Crypto Is Down Today: What to Expect From Bitcoin And Altcoin

20-12-2024

Why Crypto Market Is Down Today: What’s Next for Bitcoin And Altcoin?

Crypto Market Faces Decline Despite "Greed" Sentiment

The crypto market is experiencing a downturn even as the Fear & Greed Index remains at 74, signaling overbought conditions. This marks a drop from last month's 80, reflecting cooling sentiment and rising uncertainty. Investors are engaging in profit-taking, underscoring the cyclical nature of cryptocurrency markets, where extremes often trigger corrections.

Fear & Greed Index

Crypto Market Cap Sheds $134 Billion, Testing Key Support

The global crypto market cap has dropped by $134 billion, settling at $3.32 trillion. Maintaining this support level is vital to prevent a further decline to $3.10 trillion.

Federal Reserve's Hawkish Tone Spurs Crypto Sell-Off

The Federal Reserve’s cautious approach to future rate cuts has rattled speculative markets. Despite delivering its third consecutive rate cut, the Fed hinted at fewer reductions for 2025, prompting a reassessment by investors. This shift led to broader risk-asset sell-offs, with Bitcoin briefly dipping below $100,000 before recovering.

Bitcoin ETF Outflows Hit Record Amid Price Dip

Bitcoin ETFs saw their largest single-day outflows since inception, with $680 million withdrawn on December 19. This broke a 15-day streak of positive flows. Ethereum ETFs also recorded significant outflows, ending an 18-day positive streak. Both assets have faced pressure due to the Fed's announcement.

Bitcoin Price Drops Below $97K, Trading Volume Declines

Bitcoin’s price dipped below $97,000, while 24-hour trading volume fell by 0.52% to $96.65 billion. This comes amid market uncertainty following the Fed's announcement, catching bullish traders off guard.

Massive Liquidations: $869 Million Wiped Out

Data from CoinGlass reveals that over 253,000 traders were liquidated in the past 24 hours, with total liquidations reaching $869 million. Long positions accounted for the bulk of the losses, reflecting the impact of the sudden price dip.

Crypto Community Awaits Trump’s Bitcoin Strategy

Donald Trump’s upcoming inauguration as the 47th president in January 2025 has sparked anticipation in the crypto world. Investors are eager to learn about his plans for a U.S. Bitcoin strategic reserve.

Legal Battle Over HAWK Token Collapse

Investors have filed lawsuits against parties involved with the HAWK token, which lost over 95% of its value on its December 4 launch day. The lawsuit alleges unlawful promotion and sale of the token without proper registration, violating securities laws.

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About the Author Lokesh Gupta

Expertise coingabbar.com

Lokesh Gupta is a seasoned financial expert with 23 years of experience in Forex, Comex, NSE, MCX, NCDEX, and cryptocurrency markets. Investors have trusted his technical analysis skills so they may negotiate market swings and make wise investment selections. Lokesh merges his deep understanding of the market with his enthusiasm for teaching in his role as Content & Research Lead, producing informative pieces that give investors a leg up. In both conventional and cryptocurrency markets, he is a reliable adviser because of his strategic direction and ability to examine intricate market movements. Dedicated to study, market analysis, and investor education, Lokesh keeps abreast of the always-changing financial scene. His accurate and well-researched observations provide traders and investors with the tools they need to thrive in ever-changing market conditions.