Crypto Market Sinks Deeper as Bitcoin Nears $93K, Major Tokens Face Sharp Declines
The broad downturn in the cryptocurrency market intensified at the start of U.S. trading hours, with Bitcoin (BTC) approaching the $93,000 mark, triggering a sell-off across all major cryptocurrencies. Ether, Solana’s SOL, Cardano’s ADA, XRP, and Binance Coin (BNB) all dropped by as much as 16%, while memecoin Dogecoin (DOGE) saw a more significant plunge of over 27%. Over the past 24 hours, the total crypto market capitalization has fallen by more than 11%, marking one of the most significant single-day losses of the year.
Traders suggest that the Federal Open Market Committee (FOMC) meeting earlier this week set a more hawkish tone, shifting market sentiment as the year comes to a close.
“The Fed rate cut was already anticipated and priced in, with the market focusing on the Fed’s outlook for next year,” said Jeff Mei, COO of crypto exchange BTSE, in a Telegram message to CoinDesk. “However, the outlook was less optimistic than expected, with only two rate cuts projected instead of the four that had previously been anticipated. Traders should remain cautious until inflation is under control and more clarity emerges on upcoming policies for the new year.”
Despite the short-term downturn, Mei remains optimistic about the long-term prospects for the crypto market. “Monetary and fiscal stimulus policies, both in the U.S. and globally, are likely to expand liquidity, which will eventually support the growth of crypto markets. Bitcoin, in particular, could benefit as it continues to emerge as a safe haven asset similar to gold,” he added.
