Dogecoin’s 11% Drop Leads Losses in Crypto Majors as Bitcoin Sours Festive Mood

Log In / Create Account. Sign Up. BTC. 94,306.95. -7.92%. ETH. 3,201.27. -14.06%. USDT. 0.99869579. -0.07%. XRP. 2.08. -14.24%. BNB. 637.61. -10.12%. SOL. 183.64. -13.14%. USDC. 1.00. +0.01%. DOGE. 0.28805705. -22.31%. STETH. 3,194.55. -14.05%. ADA. 0.80439843. -19.33%. TRX. 0.23418744. -12.77%. AVAX. 35.39. -19.00%. LINK. 21.10. -18.27%. WBTC. 93,968.08. -7.81%. TON. 4.94. -9.98%. SHIB. 0.0₄19722. -20.27%. SUI. 3.69. -19.71%. XLM. 0.33371754. -18.85%. HBAR. 0.25114360. -15.21%. LEO. 9.14. -0.83%. Markets. Share this article. “We believe the root cause of the morning’s crash to be the market’s overly bullish positioning,” QCP traders said in a Friday note.. By Shaurya Malwa|Edited by Parikshit Mishra. Updated Dec 20, 2024, 7:06 a.m. UTCPublished Dec 20, 2024, 6:28 a.m. UTC. What to know:. Losses in BTC and other crypto majors extended to their third straight day.. Traders at Singapore-based QCP Capital attributed the market crash to overly bullish sentiment in the past month.. A drop in bitcoin comes amid an otherwise bullish period for the asset.. Losses in bitcoin (BTC) and other crypto majors extended to their third straight day, as risk-off behavior after this week’s FOMC meeting and general profit-taking contributed to heavy market sentiment.. BTC dropped 4.2% in the past 24 hours, with Solana’s SOL, ether (ETH) and Cardano’s ADA falling as much as 9%. Dogecoin slid the most with an 11% drop, extending weekly losses to over 21%.. Story continues below. Don’t miss another story.Subscribe to the Crypto Daybook Americas Newsletter today.See all newslettersBy signing up, you will receive emails about CoinDesk products and you agree to ourterms of useandprivacy policy.. The broad-based CoinDesk 20 (CD20), an index of the largest tokens by market cap, fell 5.5%. That spread over to futures markets, with over $890 million in long and short liquidations in the past 24 hours.. Reaction to a hawkish FOMC triggered a sharp selloff across all risk assets on Wednesday and Thursday. Nasdaq plummeted 3.5%, S&P 500 dropped 2.9% and BTC declined more than 6% since the meeting, where Fed chair Jerome Powell hinted at only a few rate cuts in 2025.. Powell then said at a post-FOMC press conference that the central bank wasn’t allowed to own bitcoin under current regulations — in response to a question about President-elect Donald Trump’s strategic reserve promises.. Traders at Singapore-based QCP Capital attributed the market crash to overly bullish sentiment in the past month.. “While it is easy to blame the selloff on the Fed’s hawkish cut, we believe the root cause of the morning’s crash to be market’s overly bullish positioning,” QCP said in a Telegram broadcast.. “Since the election, risk assets have enjoyed an impressive one-sided run, leaving the market extremely vulnerable to any shocks. While the Fed’s 25bps cut was expected, the source of panic can be attributed to the dot plot, which was revised lower. Due to persistent inflation, the Fed now projects two rate cuts for 2025 compared to the market’s consensus of 3 rate cuts,” QCP added.. A drop in bitcoin comes amid an otherwise bullish period for the asset.. December tends to be historically bullish for bitcoin in a move colloquially termed the “Santa Claus Rally.” Data from the past eight years shows that bitcoin ended December in the green six times since 2015, running at least 8% to as much as 46% (in the outlier year of 2020).. Seasonality is the tendency of assets to experience regular and predictable changes that recur every calendar year. While it may look random, possible reasons range from profit-taking around tax season in April and May, which causes drawdowns, to the generally bullish November and December, a sign of increased demand ahead of holiday season.. Shaurya is the Co-Leader of the CoinDesk tokens and data team in Asia with a focus on crypto derivatives, DeFi, market microstructure, and protocol analysis. Shaurya holds over $1,000 in BTC, ETH, SOL, AVAX, SUSHI, CRV, NEAR, YFI, YFII, SHIB, DOGE, USDT, USDC, BNB, MANA, MLN, LINK, XMR, ALGO, VET, CAKE, AAVE, COMP, ROOK, TRX, SNX, RUNE, FTM, ZIL, KSM, ENJ, CKB, JOE, GHST, PERP, BTRFLY, OHM, BANANA, ROME, BURGER, SPIRIT, and ORCA. He provides over $1,000 to liquidity pools on Compound, Curve, SushiSwap, PancakeSwap, BurgerSwap, Orca, AnySwap, SpiritSwap, Rook Protocol, Yearn Finance, Synthetix, Harvest, Redacted Cartel, OlympusDAO, Rome, Trader Joe, and SUN.. ABOUT. About Us. Masthead. Careers. CoinDesk News. Research. CONTACT. Contact Us. Accessibility. Advertise. Sitemap. POLICIES. Ethics. Privacy. Terms of Use. Cookie Consent. Do Not Sell My Info. DISCLOSURE. Please note that ourprivacy policy,terms of use,cookies, anddo not sell my personal informationhave been updated.. 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