Which Santa Claus Rally? Why Bitcoin Plunged to $95,000 Over the Holidays – DL News

Crypto traders hoping for a Christmas rally have lumps of coal in their stockings instead.

Bitcoin has plunged 7% in the last seven days, falling to $95,500.

Ethereum is down 10% and is trading at $3,300, while Ripple’s XRP and Solana saw similarly large drops.

The cryptocurrency market has been gripped by bearish sentiment after the Federal Reserve proposed a hawkish outlook for 2025.

Traders began de-risking their portfolios, driving Bitcoin lower from its record high of $108,000.

However, trading volumes have remained relatively low over the holidays – meaning smaller trades can have an outsized impact.

This also signals that traders are primarily focused on profit-taking rather than aggressive selling, crypto investor Scott Melker said in his latest newsletter.

Fantasize

Experts expect prices to rise next year.

Most crypto advocates see a higher price than Bitcoin’s current levels. .

K33 Research predicts a price of at least $146,000, while Fundstrat’s Tom Lee expects a quarter of a million per coin.

Standard Chartered has announced $200,000, as have Bitwise and AllianceBernstein.

Donald Trump takes office on January 20th and the eyes of every crypto investor will be on the potential policies. His advisor choices so far have been overwhelmingly pro-crypto, with a cryptocurrency PAC darling and a Fed critic among his top picks.

Trump has even signaled openness to a strategic Bitcoin reserve in the USA.

Or will he take the time to help the cryptocurrency gain a foothold and thus delay the upward momentum?

Pedro Solimano is a market correspondent based in Buenos Aires. Do you have a tip? Send him an email at [email protected].