Dec 27 2024: Bitcoin extended its decline on Friday, dropping 2.1% to $96,403.7 as of 01:30 ET (06:30 GMT). Trading volumes remained thin as year-end caution prevailed, and concerns lingered over cryptocurrencies following the Federal Reserve’s recent hawkish stance.
Market Impact of TradingView Error
On Thursday, Bitcoin prices were further pressured after an anomaly on TradingView’s Bitcoin dominance chart incorrectly showed the cryptocurrency’s market share dropping to 0%. The error, though quickly corrected, triggered market volatility, causing Bitcoin to dip toward $95,000.
Data from CoinGlass revealed that approximately $33 million in Bitcoin long positions were liquidated within four hours, contributing to the downward momentum.
Second Consecutive Weekly Loss
Bitcoin is on track for its second consecutive weekly decline, following a sharp pullback after last week’s Fed meeting. The earlier rally, driven by Donald Trump’s presidential election victory, had propelled Bitcoin to a record high of $108,244.9. However, profit-taking and concerns over macroeconomic pressures, including a more conservative outlook on rate cuts by the Federal Reserve, dampened investor sentiment.
The Fed’s decision to lower rates by 25 basis points, alongside projections of only two rate cuts in 2025 (down from previous expectations of four), prompted investors to reassess speculative assets like Bitcoin, leading to a decline in prices.
Altcoin Performance and Broader Crypto Trends
Altcoins followed Bitcoin’s lead, with most posting weekly losses amid ongoing liquidity concerns sparked by the Fed’s hawkish tone:
- Ether (ETH): Dropped 1.5% to $3,379.39, adding to a nearly 5% decline the previous day.
- XRP: Fell 2.8% to $2.2187, poised for a weekly drop of nearly 4%.
- Solana (SOL): Declined 1.7%.
- Polygon (MATIC): Lost 1%.
- Cardano (ADA): Plummeted over 8% to $0.8965.
- Dogecoin (DOGE): Fell 2.6%.
The subdued demand for speculative assets and concerns over market liquidity have weighed heavily on the broader cryptocurrency market, amplifying volatility and uncertainty.
