Ripple, Ethereum and Solana plummet as Fed impacts crypto market

The decline in the crypto market continues unabated.

In the past 24 hours, the price of Bitcoin has fallen 7.8% to $94,100 (about €89,700). Ether lost even 12% and now stands at $3,250 (about €3,000).

For the major altcoins, the losses were even greater. Solana dropped 12%, Cardano lost 14%, and XRP, the token linked to Ripple, fell nearly 10%.

This decline is a continuation of the pessimistic sentiment earlier this week. On Wednesday, Jerome Powell, chairman of the Federal Reserve, announced that interest rate cuts are likely to slow down in 2025. Shortly thereafter, the price of Bitcoin fell.

Lennix Lai, commercial director of crypto-exchange OKX, stated to DL News: "The market is reacting strongly to the Fed's prediction of interest rate cuts next year."

However, the crypto market remains historically high. Donald Trump's election win in November brought a wave of optimism to the sector. The total value of the crypto market is currently $3.5 trillion (about €3.32 trillion), more than double what the market was worth at the end of 2023.

Lai warns that the current downturn may continue in the short term and that prices may remain volatile. "The approaching holidays traditionally bring lower liquidity," Lai said.

He added that Trump's pro-crypto stance is largely already reflected in prices. "Traders should realize that the path to institutional adoption and policy changes is likely to be gradual," Lai concluded, "even with possible changes in the U.S. government."