Crypto prices tumbled Friday night, with major coins like Dogecoin (DOGE), Solana (SOL), Cardano (ADA), and Ethereum (ETH) leading the losses amid a broader market selloff sparked by the Federal Reserveโs latest economic outlook.
Crypto Prices Dive Into Correction
Bitcoin and other leading cryptocurrencies gave up significant recent gains as the market continued its correction, driven by the Federal Reserve’s updated economic projections.
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Bitcoin (BTC) dropped to $95,875 on Friday, retreating sharply from its record high of $108,268 reached on Tuesday. While the top cryptocurrency is down 4.6% in the past 24 hours, several other high-cap coins have posted even steeper losses.
Dogecoin (DOGE), the top meme cryptocurrency, posted the steepest drop, sliding 15% to $0.3066โmarking a 34% decline from its 2024 peak of $0.47, according to CoinMarketCap data.
Solana (SOL) fell nearly 13%, trading at $182, while Cardano (ADA) is down 12.3%, now at $0.85. Ethereum (ETH) has also slid close to 10% over the past 24 hours, currently priced at $3,297.
The market correction has reduced the total crypto market value by 6.75%, bringing it to $3.28 trillion. Over the past 24 hours, $1.17 billion in long and short positions were liquidated, with Bitcoin leading the way at $241 million in liquidations, according to CoinGlass data.
Powelโs Comments
The sharp market losses followed the Federal Reserve’s announcement on Wednesday, when Chairman Jerome Powell highlighted higher-than-expected inflation and rising unemployment projections for 2025, sending shockwaves through financial markets.
While the Fed cut interest rates by 0.25%, it signaled that no further cuts are expected soon, adopting a more cautious stance that unsettled investors.
Powell acknowledged that inflation has made some progress, but itโs slower than anticipated. The Fedโs updated forecast now projects just two rate cuts in 2025, down from the three cuts previously expected.
On The Flipside:
- The crypto market remains in a bull trend, with prices trending higher to relatively elevated levels. Corrections during a bull market are normal and healthy, often presenting buying opportunities.
- US President-elect Donald Trump has promised to establish a Bitcoin reserve and create a supportive regulatory environment for crypto, paving the way for more capital to flow into the market.
Why This Matters
This market correction highlights the ongoing volatility in the crypto space, influenced by broader economic factors such as the Federal Reserve’s stance on inflation and interest rates. However, it also underscores the resilience of the crypto market, with healthy corrections offering potential opportunities for investors.ย
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