Crypto Currency Tracker logo Crypto Currency Tracker logo
CoinDesk 2024-12-30 07:18:47

XRP Sinks 5% to Lead Crypto Losses as Strong Dollar Rattles Bitcoin Bulls

XRP led crypto losses on the second-last day of this year as a stronger dollar weighed down global currencies and assets including bitcoin, with Asian equity markets sliding lower on Monday. XRP sunk more than 5% in the past 24 hours, with dogecoin (DOGE), Solana’s SOL, ether (ETH) and BNB falling as much as 2%. Overall market capitalization fell 3%, while the broad-based CoinDesk 20 (CD20), an index tracking the largest tokens, minus stablecoins, shed 3.5%. US equities declined on Friday and as investors trimmed positions amid uncertainty heading into year-end. An Asia Pacific index reversed 5-day gains, while futures contracts on U.S. indexes S&P 500 and Nasdaq pointed to losses in the U.S. session as of Asian afternoon hours. BTC has historically moved in the opposite direction of the U.S. Dollar Index (DXY), which gauges the greenback's exchange rate against major fiat currencies, including the euro. Strength in the dollar largely comes ahead of President-elect Donald Trump stepping into office in late January, where he has promised several policies to help the economy in the coming years. When the dollar strengthens, dollar-denominated assets become more attractive compared to cryptocurrencies. Investors prefer traditional investments like U.S. Treasuries or stocks, which yield returns in a strong dollar environment. That, however, has dampened hopes of a continual crypto rally amid lower liquidity and year-end profit-taking among investors. A “Santa rally,” a colloquial term for bullish seasonality seen in December, has failed with a nearly 4% drop in BTC prices this month (it is still up 47% in the final quarter, data shows ). Elsewhere, scaled back expectations for continual interest-rate cuts by the Federal Reserve have contributed to a fall in bitcoin and crypto prices in the past month. Some, however, remain optimistic about long-term crypto policies helping bump the market despite the lack of rate cuts or a strong dollar. “Unlike what many believe, Bitcoin and altcoins have not hit their price tops despite the ongoing consolidation fueled by the interest rate cut last week,” Maksym Sakharov, co-founder of WeFi, told CoinDesk in a Telegram message. “The selloffs recorded stem from the knee-jerk reaction by the market to uncertainties associated with macroeconomic policies. The Fed is preparing for higher figures next year despite inflation close to the 2% annual benchmark. This might shift the direction of monetary policy and impact the market. “But when US President-elect Donald Trump takes office in the coming year, more corporate firms will enter the Bitcoin ecosystem as the regulations become favorable. If these projections play out, the price of Bitcoin may also decouple from macroeconomic factors that generally trigger its intense volatility,” Sakharov added.

Leggi la dichiarazione di non responsabilità : Tutti i contenuti forniti nel nostro sito Web, i siti con collegamento ipertestuale, le applicazioni associate, i forum, i blog, gli account dei social media e altre piattaforme ("Sito") sono solo per le vostre informazioni generali, procurati da fonti di terze parti. Non rilasciamo alcuna garanzia di alcun tipo in relazione al nostro contenuto, incluso ma non limitato a accuratezza e aggiornamento. Nessuna parte del contenuto che forniamo costituisce consulenza finanziaria, consulenza legale o qualsiasi altra forma di consulenza intesa per la vostra specifica dipendenza per qualsiasi scopo. Qualsiasi uso o affidamento sui nostri contenuti è esclusivamente a proprio rischio e discrezione. Devi condurre la tua ricerca, rivedere, analizzare e verificare i nostri contenuti prima di fare affidamento su di essi. Il trading è un'attività altamente rischiosa che può portare a perdite importanti, pertanto si prega di consultare il proprio consulente finanziario prima di prendere qualsiasi decisione. Nessun contenuto sul nostro sito è pensato per essere una sollecitazione o un'offerta