The cryptocurrency market is witnessing a resurgence of selling pressure, as major cryptocurrencies experience significant declines. Bitcoin’s value plummeted, driven by an increase in profit-taking among investors and uncertainty regarding a potential interest rate cut in December. Similarly, Ethereum, XRP, and Solana faced steep downward trends.
Profit-Taking and Liquidations Pressure Prices
Based on recent data, Bitcoin dropped within 24 hours, settling at $103,222. Ethereum decreased by 4.7% to $3,434, XRP dropped by 5.3% to $2.4, and Solana fell by 8.85% to $154.76. Bitcoin had attempted a brief rally at the beginning of the week, reaching as high as $106,600, but failed to break the resistance level at $107,000, leading to intensified selling pressure.
Vincent Liu, CIO of Kronos Research, attributes this decline primarily to intense profit-taking and the liquidation of long positions following unsuccessful resistance attempts. Liu highlighted that technical weakness persists and has identified $100,000 as the new psychological support level. "The macro relief rally was short-lived," Liu remarked, warning that a potential breach could trigger a new wave of liquidations.
Although the U.S. Senate’s approval of a bill to end the longest government shutdown temporarily boosted risk appetite, caution prevailed among market players. Bitcoin’s recovery attempts were overpowered by structural selling pressure.
Fed Split: December Rate Decision Unclear
Attention in the cryptocurrency market has shifted back to the Federal Reserve’s December meeting. For weeks, expectations of a year-end rate cut bolstered the market, but Fed Chair Jerome Powell’s comments made it clear that a December cut is not guaranteed, dampening optimism.
According to a report by The Wall Street Journal, there is growing discord among Fed members regarding the timing of rate cuts. CME Group’s FedWatch Tool indicates a 66.9% probability of a rate cut at the December 9-10 meeting.
Min Jung, an analyst at Presto Research, commented that a potential rate cut could rejuvenate the market, although much of this expectation is already priced in. "A confirmed cut could boost risk appetite, yet markets have already priced in a 70% chance," Jung stated, indicating the need for a stronger macro signal for a fresh upswing.