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Cathie Wood, founder of ARK Investment Management, predicts a surge in mergers and acquisitions following Donald Trump's election, driven by anticipated regulatory rollbacks. She also forecasts Bitcoin could exceed $1 million by 2030, citing its fixed supply and growing institutional interest. Wood emphasizes that the crypto market is still in its early stages, with significant growth potential compared to gold.
Dogecoin's price plummeted to $0.31, a 35% drop from its 2024 peak of $0.47, following Federal Reserve Chair Jerome Powell's comments on inflation. Trading volume surged to $10.25 billion, with $83 million in outflows from Binance, reflecting heightened market volatility and selling pressure across the meme coin sector, including significant declines in SHIB and BONK. Despite the downturn, Dogecoin retains a market cap of $46.6 billion, maintaining its position as the seventh-largest cryptocurrency.
Bitcoin (BTC) plummeted 14% in three days, dropping from over $108,000 to around $93,200, influenced by the Federal Reserve's inflation concerns. The meme coin market suffered a 20% decline, with major assets like DOGE and SHIB facing significant losses, while XRP hit a multi-day low of under $2, though optimism remains for a potential rally driven by key developments.
Gold prices face potential decline below the $2,600 mark amid unease following the Fed's recent interest rate cut to 4.25-4.50%. Investor sentiment is dampened by uncertainty surrounding upcoming Trump policies and inflation trends, particularly as the PCE deflator data is anticipated. The market remains cautious as many investors have begun their holiday breaks.
IG
XRP, Ethereum, and Solana are experiencing significant declines, with Ethereum down 13% and Solana 18%. The crypto market is reacting to the Federal Reserve's indication that interest rate cuts will slow in 2025, leading to a 7.3% drop in Bitcoin to $94,662. As the holiday season approaches, reduced liquidity may increase volatility in the market, which currently holds a total value of about $3.5 trillion.
Bitcoin recently hit a new all-time high of over $108,000 but has since dropped to $94,500 following comments from Federal Reserve Chair Jerome Powell about interest rates. This has sparked debate in the crypto community over whether this decline is a normal correction or signals the end of the bull market. Analysts emphasize the importance of the $94,000 support level, with potential consequences for BTC's price trajectory if it fails to hold.
Ark Invest sold 13,780 shares of Coinbase for approximately $3.9 million amid market volatility following Jerome Powell's hawkish speech, which caused a 10% drop in Coinbase's stock price to $279.86. Despite this, Coinbase is up 61% year-to-date, and Ark retains $110 million in shares, representing 9.9% of its ARKF portfolio, reflecting a strategic risk management approach. This move aligns with Ark's history of adjusting its Coinbase holdings in response to market conditions.
On December 19, US spot Ethereum ETFs experienced significant outflows totaling $60.47 million, ending an 18-day inflow streak, primarily driven by the Grayscale Ethereum Trust, which saw $58.13 million exit. This downturn coincided with a broader crypto market decline, as Ether's price dropped over 9% to $3,371 amid inflation concerns following the Federal Reserve's interest rate cuts. Despite the recent setbacks, spot Ether ETFs have accumulated $2.4 billion in net positive flows since their launch in July, with 81% of ETH holders still profitable at current prices.
Dogecoin has experienced a significant decline of over 25% in the past two days, nearing critical support levels around $0.22076. Following the recent FOMC meeting, bearish sentiment in the crypto market has intensified, raising concerns about a potential drop below $0.20. Analysts suggest that if DOGE rebounds, it could target $0.40894 and $0.65557, indicating a possible 165% rally.
Inflation in the U.S. rose to 2.4% year-on-year in November, while month-on-month inflation slowed to 0.1%. Despite this uptick, the Federal Reserve cut interest rates by 25 basis points, with concerns about future inflation driven by potential tariffs under President-elect Trump. The Fed now anticipates inflation will not reach its 2% target until late 2026.
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