Pepe

Ethena

Reserve

<ul class="wp-block-list">
 <li>The US stock market lost $1.5 trillion in a day, sparking a $588 million liquidation in the crypto market, with XRP hit hardest.</li>  
 <li>Federal Reserve rate cut projections for 2025 reduced optimism, shifting trader sentiment from "Extreme Greed" to "Fear."</li>  
 <li>Analysts warn of further sell-offs by 2025 due to delayed regulatory policies, while rumors of a new ETF raise recovery hopes.</li> 
</ul>  
<p>The US stock market experienced a dramatic loss of over $1.5 trillion in a single trading day. This decline sent shockwaves through financial markets, impacting cryptocurrencies significantly.</p>  
<p>Notably, the sell-off was triggered by a series of unsettling events, including Federal Reserve rate cuts and geopolitical tensions like Israel's airstrikes on Iran-backed groups in Yemen. The crypto market faced notable turmoil as traders offloaded assets amid growing uncertainty.</p>  
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter">
 <div class="wp-block-embed__wrapper">
  https://twitter.com/santimentfeed/status/1869593853939855427
 </div>
</figure>  
<h2 class="wp-block-heading" id="h-crypto-liquidations-reach-588-million"><strong>Crypto Liquidations Reach $588 Million</strong></h2>  
<p>Additionally, the crypto market recorded liquidations amounting to $588 million in the past 24 hours. XRP witnessed the heaviest impact, with $69 million liquidated as its price <a href="https://cryptonewsland.com/xrp-price-drops-vechain-price-surges-while-altcoin-shatters-records-with-its-155-million-seed-round-is-this-the-next-big-crypto/" target="_blank" rel="noopener noreferrer nofollow">dropped</a> from $2.82 to $2.56. Bitcoin followed with $60 million in losses after its price fell below $96,000. Ethereum, too, faced a sharp sell-off, losing nearly $58 million.</p>  
<p>Moreover, Altcoins were not spared in the market upheaval. Avalanche, Chainlink, Litecoin, and Pepe each saw price declines of around 16%. XRP dropped by 6.74%, trading at $2.35, while Solana recorded a 9.79% decline over the week, now priced at $208.49. The sudden shift from “Extreme Greed” to “Fear” among traders has contributed to the widespread sell-off.</p>  
<h2 class="wp-block-heading" id="h-market-sentiment-shaken-by-federal-reserve-policy"><strong>Market Sentiment Shaken by Federal Reserve Policy</strong></h2>  
<p>Consequently, market sentiment turned cautious following the Federal Reserve's recent rate cuts. The central bank indicated that fewer rate reductions might occur in 2025 than initially anticipated. This projection spooked traders in both traditional and digital asset markets. The apprehension was further amplified by volatile economic conditions and increasing geopolitical risks.</p>  
<p>However, despite the broad sell-off, certain assets performed well. Ethena (ENA)<a href="https://cryptonewsland.com/ethena-ena-rallies-36-as-arthur-hayes-commits-11m-investment/" target="_blank" rel="noopener noreferrer nofollow"> rose</a> by 11.66%, trading at $1.18, driven by its new utility features. Movement (MOVE) gained 11.48%, reaching $0.7171 due to strong community engagement.</p>  
<h2 class="wp-block-heading" id="h-analysts-warn-of-further-volatility"><strong>Analysts Warn of Further Volatility</strong></h2>  
<p>Arthur Hayes, former CEO of BitMEX, issued a warning about the potential for further market volatility. He suggested that the crypto market could see another downturn around Donald Trump’s inauguration on January 20, 2025. Hayes believes delayed regulatory policies due to political disagreements could fuel additional market sell-offs.</p>  
<p>Therefore, although analysts note the current turmoil, some view this period as a buying opportunity. Many predict that 2025 could still be a pivotal year for Bitcoin, with potential for new all-time highs. Additionally, rumors of a new cryptocurrency exchange-traded fund (ETF) slated for next year are sparking hope for market recovery.</p>   
<p>The post <a href="https://cryptonewsland.com/crypto-market-tumbles-as-588m-liquidations-spark-panic/" rel="noopener noreferrer nofollow">Crypto Market Tumbles as $588M Liquidations Spark Panic</a> appeared first on <a href="https://cryptonewsland.com" rel="noopener noreferrer nofollow">Crypto News Land</a>.</p>

Crypto Market Tumbles as $588M Liquidations Spark Panic

Table of Contents

Crypto News Land

Other articles published on Dec 20, 2024

French bank BPCE to offer crypto investments

Best Meme Coins to Buy and Hold for Long Term: BTFD Presale Captivates Crypto All-Stars Investors...

Orbs Introduces Liquidity Hub V2 to Set a New Standard for DEX Liquidity (20 Dec)

Trump-Backed World Liberty Financial Swaps Its cbBTC for WBTC After Sun Joins as Adviser

Market Forces Drive Bitcoin and Altcoin Declines

Will Tether’s AI Platform Boost Crypto Industry?

Join our free newsletter for daily crypto updates!