Market updates

Bitcoin Falls to $93K, Dogecoin Drops 27%

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2024-12-23 | 5m

The crypto market experienced a sharp decline, with Bitcoin (BTC) plummeting to $93,000 and Dogecoin (DOGE) losing over 27% in value. Other major cryptocurrencies, including Ether (ETH), Solana (SOL), Cardano (ADA), XRP, and Binance Coin (BNB), dropped by as much as 16%. This resulted in an overall market capitalization loss of more than 11% within 24 hours, marking one of the year’s steepest single-day downturns.

Analysts attribute the slump to a hawkish tone from this week’s Federal Open Market Committee (FOMC) meeting, which dampened market sentiment. Although a Federal Reserve rate cut had been anticipated, the outlook for fewer cuts in 2025—two instead of the expected four—shook confidence.

Jeff Mei, COO of crypto exchange BTSE, warned traders to remain cautious amid persistent inflation and uncertainty surrounding future policies under President Trump. However, Mei remains optimistic in the long term, predicting that global monetary and fiscal stimulus will increase liquidity and eventually benefit crypto markets, particularly Bitcoin, as it solidifies its status as a digital safe-haven asset.

Source: CoinDesk

Futures Market Updates

In the past 24 hours, BTC futures saw a slight increase in open interest (+0.34%) alongside a significant rise in trading volume (+6.38%), while ETH futures experienced the same growth in open interest (+0.34%) but a decline in trading volume (-4.00%). Both have more long liquidations than shorts. Both markets showed balanced long/short ratios. Funding rates were slightly higher for BTC (0.0087%) than ETH (0.0074%).