The cryptocurrency market faced a challenging start to the week as profit-taking and weak U.S. macroeconomic data created selling pressure. Bitcoin (BTC) led the decline, with other major cryptocurrencies following suit.
Bitcoin and Altcoins See Declines
Bitcoin has dropped 1.8% in the past 24 hours, reaching $91,800 — its lowest level since December 5. This marks a 14% decline from its record high of $108,278 on December 17.
Ether (ETH) fared slightly better, slipping 0.7% to $3,320 but remains 17% below its December peak. Solana (SOL) held relatively steady, with the SOL/BTC ratio climbing 0.35%.
Ripple (XRP) and Stellar (XRM) took the biggest hits, falling 6% and 6.3%, respectively. Litecoin (LTC) proved more resilient, with a smaller 1.9% drop.
Crypto Stocks and Miners Feel the Pressure
The downturn extended to crypto-related stocks. MicroStrategy (MSTR) fell 7%, while Coinbase (COIN) dropped 5.3%. Bitcoin mining companies such as MARA Holdings (MARA) and Riot Platforms (RIOT) also saw declines of more than 7%.
Profit-Taking Adds Selling Pressure
Much of the selling pressure stems from profit-taking. Bitcoin’s 117% rally this year has prompted many long-term holders to cash out. Profit-taking currently exceeds $1.2 billion on a seven-day average, significantly higher than normal, although below the December 11 peak of $4.0 billion.
Macroeconomic Challenges Weigh on the Market
Weak economic indicators are compounding the selling pressure. The U.S. Chicago PMI, an indicator of economic activity, hit its lowest point since May, signaling a potential slowdown.
Meanwhile, uncertainty about the Federal Reserve’s interest-rate policy heading into 2025 is creating additional market hesitation. The central bank has paused rate cuts until at least March, adding to investor concerns.
