Market
Bitcoin Dips Below $100K Amid $1B Fund Outflows
AR
Dec 23, 2024
Image Credit - Midjourney
Market Summary
The market experienced significant turbulence as Bitcoin briefly dipped below $95,000, struggling to maintain the $100,000 mark. This volatility coincided with substantial outflows from crypto funds, totaling $1 billion over two days, including a single-day outflow of $576 million on December 19. The market reaction followed the Federal Reserve's hawkish stance, leading to a 0.37% decline in assets under management for digital asset exchange-traded products.
Key Price Movements
Bitcoin: Currently trading around $96,000, down from recent highs above $100,000
Ethereum: Showing resilience at approximately $3,840, despite market pressures
Altcoins: Mixed performance with XRP, Horizen, and Polkadot seeing inflows, while Solana faced outflows
Market Influences
The Federal Reserve's hawkish position has significantly impacted investor sentiment, triggering a $1.4 billion liquidation event in leveraged long positions. Despite the overall outflows, Bitcoin and Ethereum maintained net inflows of $375 million and $51 million, respectively, for the week. The market remains sensitive to macroeconomic factors and regulatory developments, with the upcoming U.S. elections potentially influencing future trends.
As we approach the end of 2024, the crypto market demonstrates its characteristic volatility, with Bitcoin's dominance challenged by recent price movements. Investors are closely watching for signs of recovery and potential shifts in monetary policy that could influence the digital asset landscape in the coming months.
