Most major altcoins were trading with a negative bias at that time, including Ethereum (ETH), Tether, XRP, Solana, Dogecoin, Cardano, Tron, Shiba Inu, Toncoin, and Avalanche. They were lower by up to 5.5% at that time. However, Tron and BNB were trading in the green and were up 0.16% and 0.73% respectively.
Cryptocurrencies are in consolidation mode after a meteoric rally following the re-election of President-elect Donald Trump. BTC corrected 10% from its all-time high of $108,268.45.
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The weakness in crypto assets is due to hawkish comments from the Federal Reserve that hinted at a smaller rate cut in 2025. In its December monetary policy announcements, the central bank said it was unlikely its inflation target of 2% is achieved in the coming year.
ETMarkets.comData from the CoinSwitch Markets Desk suggests BTC’s December gains stand at 2%, with selling pressure remaining prevalent at higher levels. Despite high volatility, Bitcoin derivatives remain neutral to bullish, signaling stable sentiment, he said.
“Its 64% correlation with the S&P 500 ties its fate to broader economic concerns. Ether ETFs saw inflows of $2.5 billion despite a 10% price decline and resistance at $3,500. Institutions like VanEck predict a peak of $6,000 by 2025, underscoring long-term confidence. The Fed now expects just two rate cuts in 2025, easing near-term fears about corporate profits. Meanwhile, Turkey is strengthening crypto oversight, requiring identity verification for transactions above $425. Crypto markets are balancing optimism and caution, with a focus on macroeconomic risks and key resistance levels,” CoinSwitch Markets Desk said.
Commenting on the action, expert Avinash Shekhar, co-founder and CEO of Pi42, highlighted Bitcoin’s resilience despite the current volatility. According to him, this is a signal of bullish momentum, driven by a strong futures premium and strong key technical support above $94,608. BTC is currently trading near the psychological $1,00,000 mark and could surpass $105,000 due to the monthly futures market contracts trading at a steep premium of 12%, boosting investor confidence, Shekhar said.
Meanwhile, Ethereum’s key support lies above $3,400, which shows stability and a breakout above this level may show bullish momentum up to $4,094, reaffirming its strength in as a major altcoin, Shekhar added.
“XRP’s symmetrical triangle pattern reveals a lack of market resolution, but bulls are pushing it to rally. Stronger liquidity and ETF outflows could dampen the action in the near term, but the broader outlook remains positive for the crypto market as traditional markets stabilize and digital assets gain traction, with Bitcoin, Ethereum and XRP poised to recover,” he added.
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(Disclaimer: The recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
