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Cryptocurrencies, including Bitcoin, Ethereum, and Dogecoin, experienced significant declines following the Federal Reserve's interest rate cut, which raised concerns about inflation and unemployment. Bitcoin fell 6.2% to below $100,000, while Ethereum and Dogecoin dropped 9.7% and 16.8%, respectively. The market's reaction reflects a broader trend where cryptocurrencies behave like traditional risk assets, with speculation and FOMO driving recent valuations.
Bitcoin has dropped below $100,000, currently priced at $97,000 after a 6.4% decline, amid market reactions to Fed Chairman Jerome Powell's cautious remarks on interest rates and a looming government shutdown. Major altcoins like Ethereum and Solana also experienced significant losses, contributing to a 9% decrease in the total crypto market cap to $3.63 trillion. With only two days left for Congress to pass a spending bill, uncertainty looms as President-elect Donald Trump rejects a bipartisan funding measure, potentially leading to a government shutdown on December 21.
Germany's Free Democratic Party (FDP) is prioritizing Bitcoin and crypto policy ahead of the February parliamentary elections, advocating for a strategic Bitcoin reserve within the European Central Bank and the German Bundesbank. Their election manifesto emphasizes modernizing financial regulations to support FinTech innovations while ensuring competitiveness with European standards. The FDP also calls for a digital euro that respects user privacy and remains voluntary, reflecting a balanced approach to embracing digital assets alongside traditional monetary practices.
In 2024, institutional investors acquired 859,454 Bitcoins, equivalent to eight years of issuance, driven by the rise of US-traded spot Bitcoin ETFs, which now manage 1.4 million BTC. Public companies, notably MicroStrategy, added 297,673 BTC to their treasuries, enhancing market liquidity. Growing interest in a "Bitcoin Strategic Reserve" among lawmakers, alongside existing holdings by countries like Bhutan and El Salvador, signals a potential shift towards broader institutional and sovereign adoption of Bitcoin.
Dogecoin (DOGE) has experienced significant volatility, with an 18.35% drop in value amid broader market uncertainty influenced by Federal Reserve Chair Jerome Powell's remarks. The cryptocurrency's price fluctuations are driven by external events, community sentiment, and its unlimited supply, raising concerns about its long-term viability. As Dogecoin navigates these challenges, its future remains uncertain, with investors closely monitoring its recovery potential.
Dogecoin's price has plummeted over 25% in just two days, dropping from above $0.41 to a five-week low of $0.31 amid a broader cryptocurrency market correction. Analysts suggest that further declines could see DOGE testing key support levels around $0.22 before potentially resuming its upward trend following the recent political developments in the U.S.
World Liberty Financial (WLFI), linked to Donald Trump, has swapped 102.9 cbBTC for 103.15 WBTC, reflecting strategic support from Justin Sun amid Coinbase's delisting of WBTC. This move, valued at $10.4 million, underscores WLFI's trust in WBTC's infrastructure and aligns with Sun's criticism of cbBTC's governance. With partnerships enhancing its operations, WLFI is poised for growth in the decentralized finance sector.
Bitcoin's price has surged above $100,000, driven by long-term holders booking record profits, with their supply dropping from $14.23 billion to $13.31 billion. Short-term holders are absorbing the sell-side pressure, indicating the market may not yet be in a state of euphoria. Analysts predict a mild correction, with potential price targets of $145,000 by mid-2025 and speculation of a strategic Bitcoin reserve under the incoming Trump administration could push prices to $800,000 by the end of 2025.
Donald Trump's World Liberty Financial (WLF) has partnered with Ethereum-based Ethena Labs to integrate the yield-bearing token sUSDe into its lending platform, potentially allowing it as collateral in an upcoming Aave instance. This collaboration follows WLF's acquisition of $750,000 in ENA tokens and a broader strategy that has seen the firm invest $45 million in various crypto assets since November. The governance proposal for sUSDe will be decided this week, signaling WLF's commitment to expanding its presence in the DeFi space.
Rexas Finance (RXS) is emerging as a promising investment alternative to Dogecoin, focusing on democratizing asset ownership through real-world asset tokenization. With a successful presale raising over $28 million and plans for a public listing in early 2025, RXS tokens are projected to surge significantly, potentially reaching $5, far surpassing Dogecoin's speculative growth. The initiative emphasizes transparency and community engagement, positioning itself as a transformative force in the blockchain space.
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