A widespread cryptocurrency market crash worsened at the start of US trading hours as Bitcoin (BTC) approached the $93,000 level, triggering a drop in all major tokens.
Ether, Solana’s SOL, Cardano’s ADA, xrp (XRP) and bnb (BNB) fell as much as 16%, while memecoin dogecoin (DOGE) fell more than 27%, data shows. The cryptocurrency market cap is down more than 11% in the last 24 hours, one of the worst single-day drops of the year.
Some traders say a hawkish tone at this week’s FOMC meeting changed market sentiment ahead of the new year.
“The Fed rate cut was already expected and priced in, as markets depended on the Fed’s outlook for next year, which was less optimistic than expected and included only two rate cuts instead of four.” previously expected,” Jeff Mei, COO of crypto exchange BTSE, told CoinDesk in a Telegram message. “Traders should be cautious until inflation is tamed and we see more concrete policies from Trump over the next year.”
But in the medium and long term, we believe that monetary and fiscal stimulus policies both in the United States and elsewhere in the world will ultimately expand liquidity. “This will boost cryptocurrency markets, and especially Bitcoin, as it becomes a safe haven asset similar to gold,” Mei added.
