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Dogecoin (DOGE) plummeted 12.4% to $0.31 amid a broader market decline following the Federal Reserve's hawkish outlook, with trading volume surging 67% to $10.25 billion. The meme coin is now down 35% from its 2024 high of $0.47, while its market cap remains at $46.6 billion. Other cryptocurrencies, including Ethereum and XRP, also faced significant losses, reflecting heightened sensitivity to macroeconomic signals.
Bitcoin's price recently fluctuated, dropping below $99,000 before rebounding to $104,000, settling at $100,573, marking a 3.4% decrease in a day. Exchange transaction volumes have hit record lows, indicating reduced trading activity, while a significant support zone has formed just below $100,000, with over 1.45 million BTC accumulated at an average price of $97,500. Analysts suggest that maintaining this support level is crucial for price stability, with potential for recovery if it holds, while a breach could lead to further declines.
A recent crypto market sell-off triggered $1 billion in leveraged liquidations, primarily affecting long positions. Bitcoin, despite dropping below $96,000, has gained 130% this year, while the total crypto market cap fell 9.5% to $3.4 trillion. The Fed's hawkish stance following a rate cut decision has contributed to market volatility, with many traders viewing the pullback as a healthy correction.
Cathie Wood's ARK Invest has sold nearly $4 million in Coinbase stock as Bitcoin and the broader crypto market experience a significant downturn following a recent all-time high. The firm offloaded 13,780 shares, while still holding over 2.45 million shares valued at $672 million. Bitcoin's price has dropped to around $97,430, reflecting a 7% decline in a day, amid a market correction triggered by a hawkish speech from Federal Reserve Chair Jerome Powell.
The Dow Jones Industrial Average rose 15 points, breaking a 10-day losing streak, its worst in 50 years, while the S&P 500 and Nasdaq dipped amid a mixed market reaction following the Federal Reserve's reduced rate cut expectations. The Fed's outlook shifted from four to two cuts next year, impacting bond yields and cryptocurrency, with Bitcoin falling nearly 5% to $96,178. Analysts suggest stronger economic growth may challenge the Fed's projections, as markets now see a 66% chance of one or two more rate cuts next year.
Stocks opened strong but couldn't maintain gains after the Federal Reserve's hawkish rate cut, with the Dow Jones Industrial Average rising 0.04% to end its longest losing streak since 1974. GDP growth for Q3 was revised up to 3.1%, indicating robust domestic demand, while the 10-year Treasury yield climbed to 4.572%. Micron Technology's stock fell 16.2% after missing second-quarter guidance despite beating earnings estimates for Q1.
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.
US stocks closed mostly unchanged, with the Dow Jones Industrial Average ending a 10-day losing streak, its longest in 50 years. The S&P 500 and Nasdaq Composite fell about 0.1% amid a hawkish outlook from the Federal Reserve, which scaled back expected rate cuts for next year. The 10-year Treasury yield rose to 4.57%, the highest since May, as the economy showed growth at an annualized rate of 3.1% in the third quarter.
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.
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.
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