The crypto markets endured a difficult start to the week as Bitcoin (BTC) briefly retreated to $94,000. The markets witnessed an absolute bloodbath, with $1.5 billion in crypto derivatives positions liquidated thanks to BTC’s drop. The price eventually recovered to briefly climb above $98,000 before registering a marginal drop to slip below $97,000 to its current level of $96,878. BTC’s sudden crash left the crypto market reeling, with other altcoins registering even more substantial declines.
While BTC is down almost 3% over the past 24 hours, Ethereum (ETH) plummeted over 6% after failing to get past $4,000 and is currently trading just below $3,700. Ripple (XRP) registered a staggering drop of over 13% and dropped to its current level of $2.14. Meanwhile, Solana (SOL) is down over 7% as bearish sentiment persists, with the price down to $215. Significant losses were also recorded by Dogecoin (DOGE), Cardano (ADA), Tron (TRX), Avalanche (AVAX), Toncoin (TON), Chainlink (LINK), Polkadot (DOT), Stellar (XLM), Uniswap (UNI), and Litecoin (LTC), all of which registered double-digit losses. The crypto market cap declined substantially, almost 6% to $3.44 trillion.
Crypto Market Sees Bloodbath
Bitcoin (BTC) faced a sudden price crash as the price fell to $94,000. While the price made somewhat of a recovery, it is struggling to regain its footing above $97,000 and is currently trading around $96,700. BTC’s drop had a ripple effect on the market, with prominent altcoins registering even bigger drops. Ethereum (ETH) is down over 6%, while Ripple (XRP) is down a staggering 13%, with sellers still in control. Dogecoin (DOGE), Polkadot (DOT), and other altcoins also plummeted as the crypto market saw drops across the board.
The crypto derivatives market also took a substantial hit, which left it reeling. Data from Coinglass showed over $1.5 billion in long and short positions were wiped out. Out of this, $1.38 billion were long positions, with the bloodbath impacting 514,384 traders, as major altcoins bore the brunt of the losses. The slump is a stark reminder of the inherent volatility of the crypto ecosystem, where rapid price swings can wipe out gains in minutes and significantly amplify losses.
El Salvador Scales Back Bitcoin (BTC) Ambitions
El Salvador is close to an agreement with the IMF for a $1.3 billion loan. However, it must change its use of BTC as legal tender and reduce the government deficit in return. A team from the IMF is already in Sal Salvador to finalize the agreement with Nayib Bukele’s government. The deal will unlock $1 billion from the World Bank and $1 billion from the Inter-American Development Bank.
The loan would see El Salvador return to the international financial fold after years of isolation following its adoption of BTC as legal tender. The IMF had vehemently opposed the move, citing risks to financial stability and integrity, and urged Bukele’s government to stop accepting crypto as legal tender. Under the terms of the agreement with the IMF, El Salvador would make it voluntary for businesses to accept BTC as payment. It would also commit to reducing its budget deficit by three percentage points of GDP through spending cuts and tax increases. It would also have to pass an anti-corruption law and increase reserves from $11 billion to $15 billion.
US Can Become Crypto Superpower
Eric Trump, the executive vice president of the Trump Organization, believes a sensible set of regulatory guidelines can make the US a cryptocurrency superpower. He added he was a big fan of crypto, and his father fully intends to make America the crypto capital of the world when he returns to the White House. Eric Trump’s comments come after BTC crossed the $100,000 mark, which market watchers hailed as a landmark moment for crypto.
“The modern banking system is antiquated. It's just a matter of time before crypto not only catches up but really leaps ahead. And so, we’re incredibly excited on a lot of fronts. I think America will be the crypto capital of the world. I fully support it, my father fully supports it, and our family is fully embracing it. We believe in DeFi, and we believe that's the way of the future. America better lead the way, otherwise, we are going to leave a lot behind.”
President-elect Donald Trump recently nominated Paul Atkins as the United States Securities and Exchange Commission (SEC)Chair. Atkins is known for his crypto-friendly views and will replace Gary Gensler. Eric was also asked if his father was planning regulatory or deregulatory measures in the crypto space and what such policies could look like in practice,
“It looks like it’s transparent. That’s what it is. The people in the crypto industry are frustrated that no one’s ever put together a sensible plan as to how to regulate an industry. They’re fine with regulation, but they just want guidelines, and they’ve said that. We will have a clear road map, and hopefully, the rest of the world will follow that. Hopefully, we can lead by example because that’s what we should do as Americans. And hopefully, we truly are the crypto superpower of the world.”
Bitcoin (BTC) Price Analysis
Bitcoin (BTC) registered a dramatic fall amid a broader crypto market rout that significantly amplified losses for crypto traders. The drop can be attributed to risk sentiment souring amid growing geopolitical tensions and uncertainty over US interest rates. Additionally, BTC was subject to significant profit-taking after it crossed the coveted $100,000 mark. Traders also locked in their gains in other major altcoins. The crypto market has taken positive cues from several developments, such as nominating crypto-friendly candidates for key cabinet and regulatory positions. However, doubts have emerged about how much regulatory support Trump could provide, with analysts dismissing the idea of a strategic reserve under Trump.
BTC’s price chart shows the asset registering a substantial drop over the last few sessions as it slipped below key support levels. The asset’s bullish sentiment had waned in recent sessions, especially after it set a new all-time high last week as traders locked in their profits and geopolitical developments impacted market sentiment. BTC began the previous week in the red, dropping 1.25% on Monday and registering a marginal decline on Tuesday to settle at $95,751 after briefly dipping below the 20-day SMA. However, it made a strong recovery on Wednesday, registering an increase of almost 3% and settling at $98,851. BTC faced unprecedented volatility on Thursday as it surged past the pivotal $100,000 mark to set a new all-time high of $103,900. However, buyers quickly lost momentum after reaching this level, and the price fell back, dropping below the 20-day SMA to a low of $92,285 before recovering and settling at $97,093.
Source: TradingView
Despite facing considerable volatility on Thursday, BTC recovered on Friday, rising almost 3% and settling at $99,695. With sellers active at $100,000, BTC could only register a marginal increase on Saturday and move to $99,728. BTC crossed the $100,000 mark again on Sunday after a 1.32% increase to $101,043. However, BTC and the crypto market experienced a substantial decline on Monday. BTC plummeted below the 20-day SMA to an intraday low of $94,177. However, it recovered from this level to climb above the 20-day SMA and settle at $97,267, a decline of almost 4%. BTC has remained bearish during the current session, with the price marginally down after recovering from an intraday low of $95,687.
BTC faces resistance at $98,000. If buyers can regain control, BTC could reclaim $100,000 and push toward its all-time high. On the other hand, if sellers retain control, BTC could drop to $95,000 once again.
Ethereum (ETH) Price Analysis
Ethereum (ETH) also substantially declined this week as the crypto markets crashed. ETH was quite bullish last week despite starting it on a bearish note, registering a drop of almost 2% and settling at $3,645. Sellers retained control on Tuesday as ETH fell by 0.76% and settled at $3,617. Despite considerable selling pressure, ETH recovered on Wednesday, rising over 6% to move above $3,700 and settling at $3,844. ETH faced significant volatility on Thursday as buyers and sellers struggled to establish control. As a result, ETH fell to an intraday low of $3,644 and rose to an intraday high of $3,957 before settling at $3,787 after registering a decline of 1.48%.
Source: TradingView
The price recovered on Friday as it surged past $4,000 and reached an intraday high of $4,093. However, buyers lost momentum after reaching this level, and ETH eventually settled at $4,003 after an increase of almost 6%. With sellers active at this level, ETH registered a marginal decline on Saturday to slip below $4,000 and settle at $3,999. Sellers attempted to lower the price on Sunday as ETH fell to a low of $3,924. However, it recovered from this level to register a marginal increase and settle at $4,007. ETH started the current week facing significant selling pressure as markets collapsed. As a result, ETH fell to an intraday low of $3,504 as selling pressure increased substantially. However, buyers propped up the price from this level, and ETH ultimately settled at $3,716, registering a decline of over 7%. The current session sees ETH marginally up as buyers and sellers look to establish control.
If buyers retain control, ETH could move above the $3,800 mark and push towards $4,000. On the other hand, if sellers regain control, ETH could drop to $3,600 or $3,500.
Solana (SOL) Price Analysis
Solana (SOL) is attempting a recovery during the current session as buyers look to keep it above the crucial $200 level. SOL has experienced significant volatility since last week as it struggled to move above the 20-day SMA. SOL slipped below the 20-day SMA last Monday after a drop of almost 5% dragged the price to $225. Sellers attempted to lower the price on Tuesday as it fell to an intraday low of $215. However, it recovered from this level to register an increase of almost 4% and settled at $234. Buyers attempted a move past the 20-day SMA on Wednesday but were unsuccessful as sellers drove the price down by 1.98% to $229. Volatility increased substantially on Thursday as buyers and sellers attempted to take control. Buyers ultimately gained the upper hand as SOL registered an increase of almost 3% and settled at $236.
Source: TradingView
Buyers attempted a move past the 20-day SMA on Friday as SOL reached an intraday high of $246. However, they lost momentum after reaching this level and fell back, with SOL registering only a marginal increase and moving to $238. With SOL close to the resistance level, it could only register a marginal rise on Saturday and move to $238. Sunday saw SOL slip into the red as it registered a marginal decline. Bearish sentiment intensified substantially on Monday as SOL slipped to an intraday low of $203 before settling at $217 after registering a drop of almost 9%. The drop also saw SOL slip below a key support level of $220. The current session sees SOL marginally down as buyers and sellers struggle to establish control. Sellers will look to drive the price toward $200, while buyers will attempt to reclaim $220.
Dogecoin (DOGE) Price Analysis
Dogecoin (DOGE) experienced significant volatility at the beginning of the previous week as it fell to an intraday low of $0.40 and rose to an intraday high of $0.463 before settling at $0.424 after a decline of almost 4%. Sellers retained control on Tuesday as DOGE fell over 4% and settled at $0.406. The price recovered on Wednesday thanks to the 20-day SMA acting as a dynamic level of support, rising almost 7% and settling at $0.433. Volatility returned on Thursday as DOGE rose to an intraday high of $0.466 before dropping to an intraday low of $0.40. However, despite the selling pressure, sellers could not push DOGE below the 20-day SMA, with the price ultimately settling at $0.426.
Source: TradingView
Despite facing significant selling pressure on Thursday, DOGE recovered on Friday, rising just over 2% and settling at $0.435. DOGE remained bullish over the weekend, registering an increase of 4.18% on Saturday and almost 3% on Sunday to settle at $0.466. However, buyers retreated as markets collapsed on Monday. As a result, DOGE dropped over 11%, falling to an intraday low of $0.381 before recovering to reclaim $0.40 and settle at $0.414. The current session sees DOGE remain in the red, with the price down just over 1% and trading at $0.408, with sellers looking to drive the price below $0.40.
Ripple (XRP) Price Analysis
Ripple (XRP) registered a substantial increase at the beginning of the previous week. However, momentum waned after it reached $2.87 on Monday, as selling pressure increased significantly. As a result, the price fell on Tuesday, dropping almost 8% to hit a low of $2.27 before settling at $2.51. Sellers retained control on Wednesday as XRP fell below the $2.50 support level to $2.36. Buyers attempted a recovery on Thursday as XRP rose to an intraday high of $2.49. However, buyers lost momentum after reaching this level, allowing sellers to take over. As a result, XRP fell almost 5% to $2.24.
Source: TradingView
Despite the prevailing bearish sentiment, XRP recovered on Friday, rising over 8% and settling at $2.42. XRP reclaimed the $2.50 level on Saturday after registering an increase of 7.55% and settling at $2.61. However, it fell back in the red on Sunday, registering a marginal decline and settling at $2.60. Bearish sentiment increased substantially on Monday as XRP plummeted almost 15% to $2.21 thanks to a broader market crash. The current session sees XRP marginally up, recovering from an intraday low of $2.04. Sellers will look to regain control and drive XRP below $2. Should it slip below this level, we can expect a drop to $1.50.
Bittensor (TAO) Price Analysis
Bittensor (TAO) has faced unprecedented volatility since last week thanks to repeated rejections above $700. TAO fell to an intraday low of $566 on Monday as sellers drove the price down almost 5%. Despite considerable selling pressure, TAO recovered on Tuesday, registering an increase of 2.51% and settling at $621. Bullish sentiment persisted on Wednesday as TAO surged to an intraday high of $726. However, it could not stay at this level and fell to settle at $656, registering an increase of almost 6%. TAO faced considerable volatility on Thursday as it surged to an intraday high of $725 and fell to an intraday low of $626 before settling at $679.
Source: TradingView
TAO breached $700 on Friday, reaching an intraday high of $748 before settling at $705. However, it declined on Saturday to slip below $700 and settle at $699. Sellers attempted to drag TAO lower on Sunday but were unsuccessful as buyers pushed the price up by 2.03% to $713. TAO plummeted on Monday, falling to an intraday low of $504. However, buyers propped up the price and it ultimately settled at $600, registering a drop of almost 16%. The current session sees TAO down nearly 2% and trading at $588 after dropping to an intraday low of $551.
Arbitrum (ARB) Price Analysis
Arbitrum (ARB)’s recent rally halted abruptly as buyers lost momentum around the $1.20 mark. ARB was quite bullish last week, rising almost 6% on Monday to go above $1 and settle at $1.02. Volatility increased on Tuesday as sellers attempted to drag ARB below $1. As a result, the price fell to an intraday low of $0.96 before recovering to register an increase of almost 2% and settle at $1.04. Bullish sentiment intensified on Wednesday as ARB rallied nearly 9% to go above $1.10 and settle at $1.13. However, with sellers active around $1.15, ARB fell back on Thursday, dropping just over 3% to $1.10.
Source: TradingView
Bullish sentiment returned on Friday as ARB surged past the resistance at $1.15 and reached an intraday high of $1.24 before settling at $1.17. Sentiment changed over the weekend as ARB fell by 0.89% on Saturday and 0.46% on Sunday to settle at $1.15. Bearish sentiment increased dramatically on Monday as ARB slipped below $1, dropping to an intraday low of $0.84 before settling at $0.96. The current session sees ARB up by almost 2% as buyers look to reclaim $1.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
