The cryptocurrency market witnessed a volatile week, with Bitcoin trading in the range of $40,500 to $44,500. Ethereum traded in the range of $2,150 to $2,370. According to experts, the volatility was due to the US Federal Reserve's comment that it could reduce key interest rates three times in 2024, the introduction of an "anti-crypto" bill in the Senate of the US and the sell-off due to a bull run. in the previous week.
"At the beginning of the week, Bitcoin started trading at the $42,000 level but saw a drop to $40,000 due to increased liquidations. However, on Thursday, Bitcoin quickly recovered to the $43,000 mark, boosted by the Federal Reserve's decision to keep interest rates stable and signal possible rate cuts in the coming year," said Edul Patel, CEO of Mudrex.
"The market responded to the Federal Reserve's projection of possible rate cuts for next year, as outlined in its recent announcements. On December 12, Bitcoin temporarily paused at $41,000, with traders closely monitoring the decision. on Federal Reserve rates," added Rajagopal Menon. Vice President of WazirX.
"The week has been marked by a sharp drop in prices after US Senator Elizabeth Warren introduced her 'anti-crypto' bill to impose strict controls on several participants in the crypto industry," added Parth Chaturvedi, leader of investments in CoinSwitch Ventures.
The Digital Asset Anti-Money Laundering Act aims to make the crypto ecosystem better compliant with anti-money laundering frameworks that govern the traditional financial system in the US.
Chaturvedi added that the market recovered after the US Federal Reserve's comment, in which it also kept interest rates unchanged.
Another factor that kept the fight between bears and bulls alive in the market was the massive sell-off of tokens by investors.
On Friday, Bitcoin was trading at $42,850 and Ethereum was trading at around $2,280. In the last 24 hours, both tokens fell sharply by 1.39 percent and 3.48 percent, respectively.
According to the CoinDCX research team, this was related to Ledger's revelation that a former employee was the victim of a phishing attack, allowing the attacker to access the Ledger Connectkit library and introduce a malicious bug.
The outlook for 2024 remains positive, mainly thanks to Bitcoin ETFs.
โWe can expect an impressive start to 2024 for Bitcoin and other crypto assets as events like the approval of the Bitcoin ETF are scheduled for early 2024. The market is expected to maintain momentum due to macroeconomic factors,โ said Shivam Thakral, Director executive. at BuyUcoin.
