Bitcoin Sinks to $93K, Dogecoin Tumbles 27% as Crypto Market Struggles.

Crypto Market Faces Steep Losses as Bitcoin Dips Near $93K, Altcoins Plunge

The cryptocurrency market experienced a steep decline as U.S. trading hours began, with Bitcoin (BTC) approaching the $93,000 level, prompting a widespread sell-off across major digital assets. Ether, Solana’s SOL, Cardano’s ADA, XRP, and Binance Coin (BNB) all saw declines of up to 16%, while Dogecoin (DOGE) plunged by more than 27%. Over the past 24 hours, the total cryptocurrency market capitalization has dropped by more than 11%, marking one of the sharpest single-day losses of the year.

Traders point to the hawkish tone of this week’s Federal Open Market Committee (FOMC) meeting as a key factor in shifting market sentiment, leading to a more cautious outlook as the year ends.

“The Fed’s rate cut was largely anticipated, but what caught the market off guard was the Fed’s economic forecast for 2024. Instead of the four rate cuts previously expected, the central bank indicated only two rate cuts, which has made traders more wary,” said Jeff Mei, COO of crypto exchange BTSE, in a Telegram message to CoinDesk. “Traders should remain cautious until inflation is under control and we have more clarity on fiscal and monetary policies for next year.”

Despite the short-term downturn, Mei is optimistic about the long-term outlook for cryptocurrencies. “With ongoing global monetary and fiscal stimulus, liquidity is likely to expand, which will support the crypto market. Bitcoin, in particular, stands to benefit as it becomes an increasingly recognized safe haven asset, much like gold,” he added.