The cryptocurrency market faced substantial losses on Friday, December 20, as bearish sentiment gripped the sector. Bitcoin, the largest and most prominent cryptocurrency, experienced a decline of 4.08% over the past 24 hours. At the time of writing, Bitcoin’s price was recorded at $97,100 (approximately ₹82.6 lakh) on international exchanges, according to CoinMarketCap. Meanwhile, on Indian exchanges, Bitcoin’s value saw a steeper decline, trading at ₹87 lakh (approximately $102,236), reflecting losses of over 5%.
This dip below the crucial $100,000 (approximately ₹84.7 lakh) mark has heightened caution among investors. Federal Reserve Chair Jerome Powell recently dismissed speculations that the Fed might include Bitcoin in its reserves, a statement that has influenced market sentiment. Avinash Shekhar, Co-Founder and CEO of Pi42, commented on the development, saying, “Bitcoin’s price correction below $100,000 is significant, but historical data shows that with each price rally, the intensity of corrections tends to reduce.”
Ethereum and Altcoins See Steeper Losses
Ethereum (ETH), the second-largest cryptocurrency, saw a more pronounced price drop, losing nearly 8% on both global and Indian exchanges. As per CoinMarketCap, ETH was trading at $3,380 (roughly ₹2.87 lakh) on international platforms. Indian platforms like CoinSwitch and CoinDCX showed ETH trading at ₹3.11 lakh (approximately $3,656), reflecting similar declines.
The broader market downturn has been attributed to the Federal Reserve scaling back its target for interest rate cuts in 2025 from four to two, accompanied by a hawkish outlook. This has pressured riskier assets, including cryptocurrencies. “While traditional markets like the S&P 500 remain in positive territory, BTC and ETH have borne the brunt of this cautious approach. Even Solana (SOL) has fallen below the $200 mark, erasing its recent gains,” noted the CoinSwitch markets desk.
Overall Market Valuation Takes a Hit
The global crypto market cap dropped by 4.47% in the past 24 hours, reducing its total valuation to $3.35 trillion (approximately ₹2,85,06,999 crore), as reported by CoinMarketCap.
The market correction serves as a stark reminder of the volatility inherent in the crypto sector. While long-term trends may offer hope for recovery, the short-term outlook remains uncertain as macroeconomic factors continue to weigh heavily on investor sentiment.
