As an analyst with over two decades of experience in the financial markets, I’ve seen my fair share of market volatility and unpredictability. This latest downturn in the cryptocurrency market is no exception. The past week has been a rollercoaster ride for Bitcoin (BTC) and altcoins alike.

Bitcoin’s troubles persist, as the cryptocurrency hasn’t managed to launch a significant rebound yet, with its value lingering near or slightly below $96,000.

It appears that many alternative cryptocurrencies, including XRP, Cardano (ADA), and Avalanche (AVAX), are experiencing a dip, continuing to decline by around 3-4% on a day-to-day basis.

BTC Keeps Struggling

Over the course of a single week, there can be significant fluctuations in the cryptocurrency market, as we’ve seen over the past seven days. Last Monday and Tuesday alone, Bitcoin experienced new growth, surpassing $108,000 to establish a fresh record high.

On Wednesday evening, post the FOMC meeting, the terrain shifted noticeably. Bitcoin responded swiftly by diving below $100,000, and this was merely the beginning. Over the ensuing days, it continued to fall dramatically, reaching a low of $92,000 on Friday.

Initially, Bitcoin (BTC) halted its descent and surged past $99,000 on Saturday morning. Yet, this increase was brief as it dropped to $96,000 by Sunday and remains steady there. The question is whether the upcoming trading week will bring any changes in BTC’s price given certain factors that may influence its value.

Currently, Bitcoin’s market capitalization is approximately $1.9 trillion according to CoinGecko, and it holds a dominance of nearly 55% over the alternative cryptocurrencies.

Alts in Similar State

Over the last few days, many alternative cryptocurrencies (altcoins) have experienced sharp drops or even steeper declines. The current scene is quite dismal, with coins like Ripple (XRP), Avalanche (AVAX), Cardano (ADA), Shiba Inu (SHIB), Dogecoin (DOGE), and Ethereum (ETH) all showing losses. Yesterday, Polkadot (DOT), Stellar Lumens (XLM), Suisei Network (SUI), and Harmony (APT) also witnessed further decreases.

Amongst the larger alternative cryptocurrencies, AAVE stands out as the sole one experiencing a significant price increase. It’s currently valued at approximately $340, having risen by around 10%, despite the general market downturn.

The cumulative market capitalization of all crypto assets is down to $3.460 trillion on CoinGecko.

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2024-12-23 13:00