The price of Bitcoin is currently at $41,990 as this article is being prepared, and this weakness is concerning for investors. Although altcoins continue to remain calm, investors are on the lookout for profit-taking opportunities. We have left behind a difficult week, and the announcements from the Federal Reserve were of utmost importance. So, what is the current situation in the cryptocurrency markets?
Current Status of Bitcoin
We had seen the price of BTC drop to $40,555 during the opening of the Asian markets on December 13. Although the price recovered afterward, it was tested again below $41,500 due to another sudden sell-off on December 14. Since that time, the price of BTC has continued to fluctuate within the narrow range between $42,700 and $41,700.
The Federal Reserve’s decision on interest rates and the view of a 75bp cut for 2024 were positive. However, statements by members that could undermine optimism can dampen investor sentiment. Fed members who erode risk appetite have caused some turbulence in the markets.
Saturday was calm, and volumes decreased while no significant surprises were expected for Sunday. However, Mondays, especially in the last few months, have triggered significant movements. It would not be surprising for investors to see an increase in volatility in the next 24 hours.
Another significance of today is that after seeing green candles for 8 weeks, we are about to encounter red for the first time. Unless there’s a major surprise, the Bitcoin price will take a break from its 8-week rising streak with the weekly candle closure in the upcoming hours. At this point, closures above the $40,750 level could lead to a continuation of the rise after a short consolidation period.
Current Status of Cryptocurrencies
The cumulative value of cryptocurrencies is at the threshold of $1.6 trillion, and the volume has again dropped below $50 billion. It is hard to predict the effects of Bitcoin’s first red weekly closure, but a trend to reduce risk in altcoins could start at any moment.
Among the top 10 cryptocurrencies by market value, the only winner was Avalanche (AVAX), as we had mentioned before the rise started that the positive divergence on the futures side could support the AVAX rise during the Fed week.
ICP and BONK Coin were the altcoins among the top 100 cryptocurrencies that doubled their price this week. OSMO, HNT, and WOO Coin achieved gains of over 60%. After speculative growth, FTT Coin fell by 30%, and its daily losses exceeded 10%.
