Bitcoin Dips to $93K, Dogecoin Crashes 27% Amid Ongoing Crypto Bloodbath.

Crypto Market Faces Sharp Decline as Bitcoin Approaches $93K, Major Coins Suffer Heavy Losses

The cryptocurrency market saw a significant downturn at the start of U.S. trading hours, with Bitcoin (BTC) nearing the $93,000 level, triggering a broader sell-off across all major tokens. Ether, Solana’s SOL, Cardano’s ADA, XRP, and Binance Coin (BNB) each dropped by up to 16%, while Dogecoin (DOGE) experienced a dramatic 27% decline. In the past 24 hours, the total market capitalization of cryptocurrencies has fallen by more than 11%, marking one of the steepest single-day drops this year.

Market observers point to the hawkish tone of this week’s Federal Open Market Committee (FOMC) meeting as a key factor behind the shift in sentiment, impacting investor confidence heading into the new year.

“The rate cut from the Fed was largely expected, but what really caught the market off guard was the Fed’s outlook for 2024, which was more cautious than anticipated. Instead of the four rate cuts previously forecasted, only two were mentioned, which has made traders more wary,” Jeff Mei, COO of crypto exchange BTSE, explained in a Telegram message to CoinDesk. “Traders should stay cautious until inflation stabilizes and we have more clarity on the policies that will be implemented in the coming months.”

Looking further ahead, Mei is optimistic about the long-term outlook for crypto markets. “Monetary and fiscal stimulus in the U.S. and other countries will likely increase liquidity, which will ultimately support the growth of the crypto sector. Bitcoin, in particular, could benefit as it continues to solidify its status as a safe haven asset, much like gold,” he added.