Cryptocurrency Market Dips Amid Bearish Trends
The cryptocurrency market has experienced a significant dip in the past few days. Many top assets among the 100 largest projects by market capitalization are trading in the red on weekly charts. The global crypto market cap has dropped 1.5% in the past 24 hours, settling at $3.47 trillion.
Why Is the Cryptocurrency Market Stagnating?
The recent market downturn may be attributed to the Federal Reserve’s hawkish monetary policies. The Fed recently announced it would implement only two interest rate cuts in 2025, down from the three previously anticipated. Typically, rate cuts encourage risk-taking by easing borrowing conditions, but the reduced cuts have dampened investor sentiment.
However, optimism is on the horizon as President-elect Donald Trump unveils bullish policies for digital assets. Trump has appointed Bo Hines as the executive director of the upcoming Presidential Council of Advisers for Digital Assets, commonly referred to as the “Crypto Council.”
Top 3 Cryptocurrencies to Watch in 2025
- Solana (SOL)
Solana has emerged as one of the best-performing cryptocurrencies of the past year, demonstrating remarkable recovery since its crash in 2022 following the collapse of FTX. The SOL network has gained traction with the launch of several new SOL-based meme coins that have captured the crypto community’s interest. As the new year approaches, SOL is well-positioned for a potential rally. - Ripple (XRP)
Ripple’s XRP token has shown impressive growth, crossing the $2 threshold for the first time in seven years. The resolution of Ripple’s long-standing lawsuit with the SEC has also bolstered investor confidence. With these developments, XRP is primed for another bullish surge early in 2025. - Dogecoin (DOGE)
Dogecoin has seen significant gains following Donald Trump’s presidential win. Notably, Trump has approved the creation of the Department of Government Efficiency (D.O.G.E.), which could be a catalyst for a substantial price spike for this popular meme cryptocurrency.
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