The cryptocurrency market is facing another correction. Most assets among the top 100 projects by market cap are trading in the red zone. Bitcoin (BTC) has fallen to around $101,000, with other currencies following its trajectory.
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Why Is The Cryptocurrency Market Down Today?
The current cryptocurrency market dip may seem perplexing to some. The Federal Reserve said they will cut interest rates by another 25 basis points. Despite the bullish announcement, the markets took a dip.
The cryptocurrency market correction could be due to what’s coming in 2025. There will be just two rate cuts in 2025 instead of three. The Federal Reserve also believes inflation will stay for longer. The Fed increased its 2025 inflation forecast from 2.1% to 2.5%. The central bank added that inflation in 2026 may be at 2.1%, higher than its 2% target.
These developments may have spooked cryptocurrency investors. Risky assets may have taken a hit despite a rate cut.
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Top 3 Cryptocurrencies To Watch This Weekend
1. Solana (SOL)
SOL is following the current market correction trend. The cryptocurrency has displayed incredible performance over the last two years. The asset fell to below $10 after the collapse of FTX in 2022. Since its 2022 lows, SOL has made quite a recovery.
SOL recently hit a new all-time high of $263.21. There is a high chance that the asset will pick up the pace over the next few weeks.
2. Binance Coin (BNB)
Binance’s BNB token is also facing a correction right now. Despite the dip, the cryptocurrency could gain momentum over the next few weeks.
Like SOL, BNB also hit a new all-time high recently. The crypto touched a peak of $788.84 on Dec. 4, 2024. BNB may begin to rally very soon.
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3. Ripple XRP
Ripple’s XRP token has had quite a year in 2024. The fintech company settled its lawsuit with the SEC earlier this year. The cryptocurrency also breached the $2 mark for the first time in nearly seven years. XRP could be in a good position to rally very soon.