The recent relief rally in BTC came to a halt as the asset failed to surpass the $100,000 mark and started heading south. This decline also impacted altcoins like LINK, AVAX, ADA, SUI, and others, leading to significant price drops. Bitcoin faced a considerable correction last week after the FOMC meeting, dropping from $108,000 to $92,000 within days. It saw a bounce on Friday and Saturday, reaching almost $99,500 but failed to break through. The asset retraced back to $92,000 before experiencing another notable price increase on Christmas Eve and nearing $100,000 on the following day. However, Bitcoin was rejected once again, leading to a significant drop below $96,000.
The market capitalization of BTC has decreased to under $1.9 trillion on CoinGecko, while its dominance over altcoins has increased to 54.6%. Altcoins also faced losses, with Ethereum dropping below $3,400 after being stopped at $3,500, resulting in a 3.5% decline. Other altcoins like XRP, DOGE, SOL, BNB, TRX, and TON also experienced similar decreases. ADA, AVAX, LINK, SHIB, HBAR, XLM, DOT, AAVE, ONDO, and HYPE saw even more significant drops, with losses up to 10%. The total market capitalization of all crypto assets has decreased by over $100 billion, now standing at $3.460 trillion on CoinGecko.
The recent stagnation and decline in BTC and altcoin prices could be attributed to various factors, including market corrections post-FOMC meeting and overall market sentiment. These fluctuations are common in the crypto market, where prices can experience rapid changes within a short period. Investors should be cautious and conduct thorough research before making any investment decisions in the volatile crypto market. Despite the recent downturn, some analysts believe that BTC and altcoins could still experience upward momentum in the near future, potentially leading to a recovery in prices.
As the crypto market continues to evolve, it is essential for investors to stay informed about the latest trends and developments. Being aware of factors that can influence prices, such as regulatory changes, market news, and technological advancements, can help investors make more informed decisions. Additionally, employing risk management strategies and diversifying investment portfolios can help mitigate potential losses during periods of market volatility. By staying updated and adopting a strategic approach, investors can navigate the crypto market more effectively and potentially capitalize on opportunities for future growth.
In conclusion, the recent halt in the BTC relief rally and subsequent decline in altcoin prices have impacted the overall crypto market. While BTC struggled to surpass $100,000 and faced rejection, altcoins also experienced losses across the board. Factors like market corrections and overall market sentiment have contributed to the recent price fluctuations. It is important for investors to stay informed, conduct thorough research, and adopt risk management strategies to navigate the volatile crypto market effectively. Despite the recent downturn, some analysts remain optimistic about potential upward momentum in BTC and altcoins in the future, highlighting opportunities for growth and recovery in prices.
