The cryptocurrency market experienced a tumultuous week, marked by significant price swings, regulatory concerns, and a resilient recovery. Bitcoin fluctuated between $40,500 and $44,500, while Ethereum traded in the range of $2,150 to $2,370. The week’s volatility was attributed to various factors, including the US Federal Reserve’s potential interest rate cuts, the introduction of an “anti-crypto” bill in the US Senate, and a sell-off following the previous week’s bull run.
At the start of the week, Bitcoin faced liquidations, dropping from $42,000 to $40,000. However, a swift rebound to $43,000 occurred on Thursday, driven by the Federal Reserve’s decision to maintain stable interest rates while hinting at potential rate cuts in the coming year, according to Mudrex CEO Edul Patel.
“The market responded to the Federal Reserve’s projection of potential rate cuts in the coming year, as outlined in their recent announcements. On December 12, Bitcoin temporarily paused at $41,000, with traders closely monitoring the Federal Reserve’s rate decision,” explained Rajagopal Menon, vice president at WazirX.
A major factor contributing to the market’s turbulence was the introduction of an “anti-crypto” bill by US Senator Elizabeth Warren, aiming to impose stringent checks on various crypto industry participants. However, the market recovered after the US Fed’s commentary, which also kept interest rates unchanged.
The ongoing battle between bears and bulls was fueled by a sell-off of tokens by investors. On Friday, Bitcoin traded at $42,850, and Ethereum at around $2,280, experiencing a 1.39% and 3.48% drop, respectively, in the last 24 hours.
CoinDCX’s research team linked this decline to Ledger’s revelation of a phishing attack affecting a former employee, enabling the attacker to introduce a malicious bug into the Ledger Connectkit Library.
Looking ahead to 2024, the cryptocurrency market remains positive, especially with the anticipation of Bitcoin ETFs. We can expect an impressive start of 2024 from Bitcoin and other crypto assets as events like Bitcoin ETF approval are lined up for early 2024. The market is expected to sustain the momentum owing to the macroeconomic factors, suggesting a promising outlook for the crypto landscape.
