Bitcoin Slips Below $96K, Altcoins Tumble
Cryptocurrency markets take sudden hit as attacks in El Salvador $1.4 billion deal and the International Monetary Fund. The country agreed to make some changes to its Bitcoin policy, news that shook the market. This triggered waves of bearish momentum, causing all major cryptocurrencies to plummet, while meme coins maintained their momentum.
Bitcoin drops, altcoins follow
Bitcoin (BTC) is down 3.32% and is currently trading at $97,697. Over the past 24 hours, the price has fluctuated between $95,537 and $102,747. Its current market capitalization is US$2.05 trillion, and its trading volume has dropped slightly to US$39.57 billion. What’s behind the decline? Huge $682.04 million in outflows from spot BTC ETFs. Large companies such as Fidelity and Grayscale were not immune and also reported significant outflows.
Ethereum (ETH) took an even bigger hit, falling 6.52% to $3,420. Grayscale’s ETH ETF saw $58.13 million in outflows, but there was a silver lining – Fidelity and a few other firms reported small inflows. Even so, the overall vibe was negative. Spot ETH ETF total outflows to $70.45 million, adding to the pressure.
Solana (SOL) did not escape the plunge, falling 6.09% to $196.56. Solana’s trading volume rose slightly, but not enough to offset the losses. Analysts believe that this bearish trend may continue for now, especially for major altcoins.
Meme coins steal the show
Amid all this chaos, meme coins are thriving. Solana’s Fartcoin is up 608% since December 5, with a market capitalization of $1.18 billion. It’s a little crazy, but it shows that even in tough markets, some investors are still chasing high-risk, high-reward opportunities.
XRP, on the other hand, is a bit of a roller coaster ride. RLUSD stablecoin plummeted 13% after its launch, then recovered slightly, rising 1.51%. While the amount is small, it signals growing confidence among its supporters.
what to expect
The market looks uncertain, to say the least. Bitcoin and Ethereum are likely to see more selling as traders seize any opportunity amid the current volatility. But there is some hope — the SEC’s approval of new ETFs could facilitate the integration of cryptocurrencies into mainstream finance, bringing some long-term stability to the market.
Currently, the Fear and Greed Index is at 62. This means people are less greedy, but not completely panicked either. If you are watching the market, please be patient. Things can still get unpredictable.
