Crypto Market Turns Bearish as Uncertainty Grows for 2025

After a strong rally earlier this month, Bitcoin has sharply fallen, triggering a broader market downturn. The altcoin market mirrored this trend, with several major tokens suffering significant losses as investors grapple with this shift.

Market intelligence platform Santiment noted in a recent X post that the market sentiment swiftly shifted from bull to bear. While altcoins experienced a notable decline, Bitcoin (BTC) regained attention and saw renewed investor interest. The attraction for meme coins has also waned.

😱 The crypto majority has flipped their moods from bullish to bearish in an alarming fashion these past 2 weeks. As market caps have corrected (particularly altcoins), there is far less interest in meme coins and far more interest back on Bitcoin. This crowd FUD is a healthy… pic.twitter.com/9ByahlY7MZ
— Santiment (@santimentfeed) December 23, 2024

This period of increased fear, uncertainty, and doubt (FUD) is a typical phase in market cycles. Experienced investors may view this as an opportunity, using the downturn to position themselves for potential future gains when market conditions improve.

The future movements of Bitcoin and altcoins remain uncertain. The global cryptocurrency market cap recently fell to $3.44 trillion and marked a slight decline of 0.4% over the past 24 hours, per CoinGecko data.

On December 5, BTC surpassed the $100,000 mark for the first time, reaching an all-time high of $103,679. However, following Federal Reserve Chair Jerome Powell’s comments signaling a potential halt to interest rate cuts in the coming year, Bitcoin’s price declined, briefly falling below $100,000.

As of writing, Bitcoin is trading at approximately $94,149.81, reflecting a decrease from its recent peak.

Over the past few days, several altcoins faced sharp declines, with major tokens like Ethereum (ETH) and Solana (SOL) suffering notable losses.

Additionally, Altcoins including Solana (SOL), Dogecoin (DOGE), Cardano (ADA), and Avalanche (AVAX) have experienced even steeper daily declines. Some tokens, like Aptos (APT), have seen a loss of up to 3.4% in just the last 24 hours, as the altcoin market continues to struggle in the red.

Despite the recent downturn in the broader market, there is some positive news for altcoins. AAVE, in particular, saw a notable gain of around 10%, following an investment from World Liberty Financial (WLFI), the cryptocurrency project associated with President-elect Donald Trump.

WLFI acquired 3,357 AAVE tokens, valued at approximately $1 million, which helped boost the token’s price amid the market’s decline.

Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.

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