Bitcoin (BTC) Price Collapse, Meme Coin Bloodbath, and More: Bits Recap Dec 20

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As a seasoned analyst with over two decades of experience in the financial markets, I’ve witnessed countless market fluctuations and learned to navigate them with a calm and analytical mindset. The recent volatility in the cryptocurrency market, particularly Bitcoin (BTC), has caught my attention.

TL;DR

  • Bitcoin (BTC) dropped 14% in three days, influenced by the Federal Reserve’s inflation concerns.
  • The meme coin market saw a sharp 20% drop, with assets like DOGE and SHIB facing double-digit losses and analysts predicting further losses for the former.
  • XRP hit a multi-day low of under $2, but industry participants remain optimistic, highlighting key potential triggers for a future rally, including a Ripple ETF and regulatory resolutions.

BTC Loses $13K in Three Days

At the onset of this business week, I observed an unprecedented surge in Bitcoin (BTC), propelling it to a fresh all-time peak surpassing $108,000. This remarkable rise also catapulted its market capitalization beyond the $2 trillion threshold, a milestone that positions Bitcoin as a behemoth in the financial landscape, outstripping giants like Saudi Aramco and numerous other established corporations.

However, the peak was short-lived, and the bulls took a major blow in the following days. BTC tumbled to approximately $101,000 on December 18 and under $93,000 in the last several hours. Currently, the asset is worth around $93,200 (per CoinGecko’s data), representing a 14% decline on a three-day scale.

The market began reversing course soon after the U.S. Federal Reserve announced its most recent interest rate reduction. The benchmark was lowered by 0.25%, but Chairman Jerome Powell suggested that the policy could be on hold next year due to increasing worries about inflation. Moreover, he stated that the central bank does not have the authority to invest in Bitcoin, despite President Donald Trump’s pledges.

Although the rapid 13-day market crash in just three days may seem quite extreme, certain signs suggest that bulls could regain control soon. According to cryptocurrency analysis platform Santiment, discussions about purchasing dips have increased significantly since early August, a period when Bitcoin’s price plummeted below $50,000 but quickly rose above $62,000 a few days later. It will be intriguing to observe whether history will repeat itself in the near future.

Heavy Bleeding in the Meme Coin Niche

The market for meme-based cryptocurrencies has experienced a more significant impact compared to Bitcoin, with its daily value dropping by a substantial 20%. This decline has caused the market capitalization to fall below $100 billion.

In a surprising turn of events, most popular meme coins like Dogecoin (DOGE), Shiba Inu (SHIB), Pepe (PEPE), Bonk Inu (BONK), and many others have experienced double-digit losses. Finding a meme coin that’s performing well today is quite difficult, but Zerebro (ZEREBRO) stands out as one of the rare exceptions.

According to certain analysts, there may be additional declines in the DOGE sector. Jake Wujastyk foresees a possible drop to $0.27, whereas Rose Premium Signals anticipates a plunge to $0.22. Interestingly, Rose Premium Signals also suggests that DOGE could subsequently recover and continue its upward trend.

How’s XRP Doing?

As a crypto investor, I’d like to shift our attention towards Ripple’s native token, which has taken a dip today (December 20). At the moment, it’s trading at approximately $2, marking its lowest point in the last ten days.

Several individuals within the industry anticipate bright times for the XRP community in the future. Recently, one analyst has suggested that investors should consider selling their holdings once seven crucial events transpire.

Here are some of the significant events that have transpired:

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2024-12-20 14:46