The cryptocurrency market is experiencing a significant sell-off ahead of Christmas, with Bitcoin (BTC) dropping to around $87,000, down 2.1%, and many major altcoins, such as Solana and Cardano, seeing declines of over 3%. Overall, the market capitalization fell by 2.45% to $2.95 trillion as investors became cautious. This downturn follows a brief rally driven by strong US economic growth data, which has raised concerns about delayed interest rate cuts by the Federal Reserve—a situation typically unfavorable for crypto.
Market data indicates reduced investor participation, with a 1.5% drop in futures open interest and a decrease in spot trading volume. Additionally, Bitcoin's technical charts show a bearish pennant pattern and a "death cross," signaling potential further declines in price, echoing similar bearish trends in Ethereum. As investors pivot towards safer assets like gold and the Swiss franc, the outlook for Bitcoin and the wider cryptocurrency market appears increasingly negative.
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