Crypto Market Update: Bitcoin Consolidates Below $95K While Altcoins Show Strength
In a notable market divergence, Bitcoin continued its consolidation phase on Tuesday while several major altcoins posted significant gains. The leading cryptocurrency dipped below $95,000, trading at $94,035.31 around 1 PM IST, marking a 1.3% decline over the past 24 hours. This represents a 13% correction from its recent all-time high of $108,268.45.
Altcoin Rally Takes Center Stage
While Bitcoin experienced downward pressure, the altcoin sector demonstrated remarkable resilience:
- Ethereum (ETH) led the major altcoins with a 2.6% gain, pushing its value to ₹290,381
- XRP continued its impressive run, advancing 2.15% to ₹191
- BNB showed strength with a 1.39% increase, reaching ₹58,476
- Solana emerged as one of the day’s top performers with a 5.2% surge
- Dogecoin, Cardano, Shiba Inu, Toncoin, and Avalanche all posted positive movements
Market Analysis
According to Avinash Shekhar, Co-Founder & CEO at Pi42, Bitcoin has shown resilience despite the current market volatility. The cryptocurrency has attracted substantial institutional interest, with cumulative inflows totaling $375 million this week despite the price decline. Notable institutional activity included MicroStrategy’s acquisition of 5,262 Bitcoin during the period.
Federal Reserve Impact
The recent weakness in crypto assets can be attributed to hawkish commentary from the Federal Reserve, which has indicated fewer interest rate cuts than previously anticipated for 2025. The central bank’s December monetary policy announcements suggested that achieving its 2% inflation target remains challenging in the near term.
Political Developments
In a significant development for the crypto sector, President-elect Donald Trump announced the appointment of Bo Hines as executive director of the Presidential Council of Advisers for Digital Assets. The council will be chaired by incoming crypto czar David Sacks, potentially signaling a new era for cryptocurrency regulation and adoption in the United States.
Technical Outlook
Market analysts note that while Bitcoin faces immediate support around the $90,000 level, the current consolidation phase could be healthy for the market’s long-term stability. The divergence between Bitcoin and altcoin performance suggests a potential rotation of capital as investors seek higher returns in the broader cryptocurrency ecosystem.
These market movements continue to demonstrate the maturing nature of the cryptocurrency market, with institutional participation and regulatory developments playing increasingly important roles in price action and market sentiment.
