Why crypto market’s dip isn’t the end of the bull market — According to top experts:
Are the recent liquidations and falling prices setting the stage for a longer crypto winter, or could this be the breather before another bull run?
As the year winds down, the crypto market seems to be taking a pause after a prolonged bullish run, with the global market cap shedding more than 6% to settle around $3.47 trillion as of Dec. 20.
Bitcoin has slipped below the crucial $100,000 mark, trading at $96,680 as of this writing — a drop of nearly 3.5% in the past 24 hours.
Ethereum , the second-largest crypto by market cap, has experienced an even sharper decline, tumbling 6% over the same period and accumulating weekly losses of 15%, leaving it at $3,400 levels.
The decline hasn’t spared the rest of the market either. Top 100 altcoins recorded losses ranging between 10% and 20%, while meme coins — known for their wild price swings — were hit the hardest, with an average sector-wide decline of 12%.
Dogecoin , for instance, plunged over 12% to $0.31, and Shiba Inu fell nearly 10% to $0.0000211.
A closer look at open interest — the total value of outstanding futures contracts — suggests that the market may be entering a bearish phase.
On Dec. 18, the Fed announced its third interest rate cut of the year, reducing the federal funds rate by 0.25% to 4.5%.
While this move was widely anticipated and brought the cumulative reduction for the year to 1%, the central bank’s messaging carried a more cautious tone.
Fed officials cleared that only two additional cuts are planned for 2025, and any further adjustments will depend on inflation trends and overall economic conditions.
The Fed’s measured approach reflects its ongoing struggle to control inflation, which is expected to stay above its 2% target until at least 2026.
The announcement sent shockwaves through financial markets, particularly risk-sensitive assets like crypto and stocks. U.S. equity markets reacted sharply, with the Dow Jones and Nasdaq 100 both tumbling over 2%.
