The crypto market witnessed the sharpest declines in months as Bitcoin crashed to lows of $92k on December 20, 2024.
However, the flagship cryptocurrency was back at $97k at the time of writing.
Meanwhile, Horizen price led top gainers as Ethereum and XRP flipped positive after crashing to key support levels.
Per market data from CoinGecko, the global market capitalization of all cryptocurrencies stood at $3.35 trillion, down 3.5% in the past 24 hours.
A snapshot of the market also showed global trading volume was above $361 billion, more than 33% up in the same period as Bitcoin dominance hovered around 57.6%.
Ethereum’s dominance was at 12.2%.
In terms of sentiment, CoinMarketCap’s crypto fear & greed index had the metric at 62 – still in greed despite the BTC crash.
On December 19, as BTC hovered above $102, the Bitcoin Fear & Greed Index stood at 75.
Bitcoin Fear and Greed Index is 75 — Greed
Current price: $102,367
Follow on Telegram: t.me/BitcoinFearAnd…
Why did crypto markets crash?
Bitcoin’s pullback, a sharp decline from $100k to $92.5k, happened as the crypto market joined other risk assets in a negative reaction to the Federal Reserve’s commentary on December 19.
After announcing a 25 bps interest rate cut, Fed Chair Jerome Powell signalled a hawkish stance by noting that the central bank sees fewer rate cuts in 2025.
With stocks also trading lower premarket, BTC price fell to near $92,100, moving further from its recent all-time high above $108,000.
The sell-off cascaded to the rest of the crypto market as spot Bitcoin exchange-traded funds recorded outflows to end a 15-day streak of inflows.
While the bounce is likely to see BTC face the $100k hurdle again, analysts are bullish and suggest the dip is for buying.
“The drivers of the bull market are long-term and fundamental, while the drivers of the pullback are short-term and tactical.
That makes the pullback an opportunity and not a reversal” Matt Hougan, chief investments officer at asset manager Bitwise said.
ETH and XRP price
ETH and XRP look to have benefitted from this outlook as their prices climbed from lows of $3,098 and $1.97 respectively.
Ethereum and XRP traded around $3,424 and $2.25, with weekly performance at -12% and -8%.
Horizen (ZEN) price spikes 60%
Horizon (ZEN) led the top gainers among the 500 largest cryptocurrencies by market cap after skyrocketing more than 60%.
The ZEN token’s recent halving and Grayscale launch of ZEN Trust catalyzed the gains. ZEN price reached highs of $26.
Top gainers
Elsewhere, Hyperliquid (HYPE), Movement (MOVE) and Sui (SUI) were top gainers among the 100 largest cryptocurrencies by market cap.
The 24-hour gains for HYPE, MOVE and SUI were 18%, 11% and 3%.
Top losers
Most altcoins were in red in the 24-hour time frame.
However, top losers per CoinMarketCap were Pudgy Penguins (PUDGY) -16%; Curve DAO (CRV) -15%; Pepe (PEPE) -14% and Aptos (APT) -14%. The Aptos decline followed news of its CEO stepping down.
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