Crypto Market Today 12/20: Bitcoin Drops to $96K, Altcoins See Red, Wall Street Softens

Bitcoin falls to $96,000, marking its lowest point since December 10. Altcoins experience widespread declines, and Wall Street closes slightly lower amid cautious investor sentiment.

Crypto News Dec 20, 2024 0 48 Add to Reading List

Crypto Market Today 12/20: Bitcoin Drops to $96K, Altcoins See Red, Wall Street Softens

Bitcoin (BTC) continues its downward trend for the second consecutive day, plunging below $96,000 — its lowest level since December 10.

Wall Street Futures React to Inflation Data Expectations

U.S. stock futures fell Thursday night as traders anticipated the release of the Federal Reserve’s preferred inflation metric.

Dow Jones futures: Down 119 points (0.3%).
S&P 500 futures: Declined by 0.3%.
Nasdaq 100 futures: Dropped 0.4%.

The drop in futures followed the failure of a Republican-led House proposal to fund the government for three months, potentially leading to a partial shutdown if no agreement is reached by Friday night.

Thursday’s Market Snapshot

The Dow Jones closed up 15 points, breaking a 10-day losing streak.
The S&P 500 and Nasdaq Composite closed slightly lower.
Treasury yields rose, pressuring stocks further.

Investors now focus on November’s Personal Consumption Expenditures (PCE) Index, expected Friday. Analysts forecast:

Monthly increase: 0.2%.
Annual increase: 2.5%.
Core inflation: Projected at 0.2% MoM and 2.9% YoY.

The Federal Reserve’s decision this week to cut interest rates by 25 basis points has set a cautious tone for 2025, with only two rate cuts projected instead of the four expected in September.

Bitcoin and Altcoins See Significant Declines

Bitcoin dropped below the $100,000 threshold on Thursday, pressured by expectations of fewer rate cuts in 2025.

BTC hit a local bottom at $95,700, down from its intraday high of $102,800.
Fed Chair Jerome Powell’s hawkish tone contributed to a risk-off sentiment, triggering sell-offs in risky assets.

Altcoin Market Performance

Major altcoins followed Bitcoin’s downturn, with top projects losing 5-9% over the past 24 hours:

Ethereum (ETH): Dropped below $3,500, erasing December gains. ETH declined sharply from over $4,000 earlier this week.
Other notable losses: Dogecoin (DOGE), Uniswap (UNI), Monero (XMR), Cosmos (ATOM), and Bitcoin Cash (BCH).