Crypto Market Faces Correction Amidst Optimism
The cryptocurrency market experienced a notable slowdown in momentum on Tuesday, December 31. After a remarkable December that saw Bitcoin reach an all-time high of over $108,000 (approximately Rs. 92.4 lakh), the trading value dipped to $92,458 (around Rs. 79.13 lakh) on international exchanges. According to data from CoinMarketCap, Bitcoin faced a loss of 0.98 percent in the last 24 hours. In India, the situation was slightly worse, with a dip of about 1.88 percent. On local platforms like CoinSwitch and CoinDCX, Bitcoin was trading around $100,308 (approximately Rs. 85.8 lakh).
Bitcoin’s Recent Performance
Bitcoin’s recent performance has been a rollercoaster ride. The cryptocurrency briefly rallied near the $95,000 (roughly Rs. 81.3 lakh) mark. However, long-term holders began to book profits, which led to a decline in its price back to $92,400 (approximately Rs. 79 lakh). This price correction was compounded by over $259 million (around Rs. 2,216 crore) in liquidations within the past 24 hours. While retail investors seem to be selling off their holdings, institutional investors, such as MicroStrategy, are seizing the opportunity to buy during this dip. Mudrex CEO Edul Patel noted that despite the current market conditions, investor sentiment remains strong, indicating a potential for recovery.
Ether and Other Cryptocurrencies
Ether, the second-largest cryptocurrency, also followed Bitcoin’s downward trend. On international exchanges, Ether recorded a loss of 1.76 percent, trading at $3,332 (approximately Rs. 2.85 lakh). In India, the value dropped by 1.95 percent, bringing it to $3,505 (around Rs. 3 lakh). Avinash Shekhar, Co-Founder & CEO of Pi42, commented on the bearish signals surrounding Ethereum. However, he also pointed out that there are signs of recovery, as increased funding rates suggest renewed investor confidence. The trading volume for ETH has risen, indicating a possible shift in market sentiment toward bullishness, even amid the current bearish trends.
Market-Wide Impact and Future Outlook
The overall cryptocurrency market has not been spared from losses. Many cryptocurrencies, including Ripple, Solana, Dogecoin, Cardano, Tron, Avalanche, and Chainlink, are trading in the red. Other notable assets like Shiba Inu, Polkadot, Stellar, Uniswap, Litecoin, and Near Protocol also experienced declines. CoinMarketCap reported that the total crypto market cap fell by 1.58 percent in the last 24 hours, now standing at $3.23 trillion (approximately Rs. 2,76,46,377 crore). Despite the downturn, certain cryptocurrencies like Tether, Binance Coin, USD Coin, Leo, Polygon, and Iota managed to maintain their gains.
Looking ahead, experts remain optimistic about the future of cryptocurrency. Shivam Thakral, CEO of BuyUcoin, highlighted that 2024 has been a remarkable year for the crypto market, with a total trading volume of $18.4 trillion (around Rs. 15,74,96,272 crore). Investors are hopeful that ongoing regulatory clarity and institutional adoption will sustain momentum into 2025, despite the current market correction
The cryptocurrency market is currently navigating a phase of correction, with Bitcoin and Ether leading the way in losses. However, the underlying sentiment among investors remains optimistic. Institutional players are capitalizing on the dip, while retail investors are adjusting their strategies. As the market evolves, the focus will be on how regulatory developments and institutional interest shape the future of cryptocurrencies.
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