During the fourth quarter, the cryptocurrency market experienced a significant decline in the prices of Bitcoin and Ether, with both assets dropping by more than 22%. The usual December “Santa Rally,” which typically brings a positive trend to the crypto market at year-end, failed to materialize this time, leaving the market unstable. Bitcoin and Ether, being the largest and most popular cryptocurrencies globally, heavily influence the overall crypto market. Their price fluctuations deeply affect investor sentiment and expectations regarding the future of cryptocurrencies. The rising global economic uncertainty, high inflation rates, and tight monetary policies by central banks during this quarter adversely impacted the crypto market. Experts suggest that this decline may indicate that the market is entering a prolonged and deep corrective phase. Investors are advised to remain cautious and closely monitor market volatility, as cryptocurrency prices are likely to remain highly unstable. Attention is now focused on whether Bitcoin can maintain its support levels in the new year; a drop below current levels could trigger further declines across other cryptocurrencies. This situation underscores the importance of cautious and well-informed investment decisions to avoid potential losses.
Source: coindesk
