The cryptocurrency market continues to stagnate. The market has lost significant traction over the last week. Bitcoin (BTC) climbed to a new all-time high of $108,135 on Dec. 17, 2024, but has since faced a substantial correction. BTC’s price has fallen below $100,000 and is struggling to regain its earlier momentum.
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Why Is The Cryptocurrency Market Struggling?
The cryptocurrency market’s latest correction came after the Federal Reserve took a hawkish stance in the recent FOMC meeting. The Fed announced two interest rate cuts in 2025 instead of three. Inflation in the US increased to 2.7%. The Federal Reserve does anticipate inflation to fall under its 2% target anytime before 2027. The Fed’s hawkish stance may have spooked investors from pouring money into risky assets.
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Despite the dip, there is a high chance that the crypto market will thrive under President-elect Donald Trump’s leadership. Trump has been very supportive of the cryptocurrency space and wants to make the US a hub for crypto development.
Top 3 Cryptocurrencies That Could Rally This Weekend
1. Bitcoin (BTC):
BTC being the market leader will likely make the first move. With Trump’s inauguration just around the corner, we may witness BTC make another bullish outbreak.
The original cryptocurrency should definitely be on your watchlist.
2. Solana (SOL):
SOL is another cryptocurrency that has hit a new all-time high this year. The asset made significant gains over the last month, hitting a peak of $263.21 on Nov. 23, 2024.
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The SOL network has experienced stellar growth this year. With more projects being built on SOL, the asset could see a rebound very soon.
3. XRP:
XRP breached the $2 mark for the first time in seven years earlier this month. Ripple’s settlement of its lawsuit with the SEC has also greatly helped the asset’s price.
WisdomTree recently applied for a spot XRP ETF. If the SEC approves the filing, the cryptocurrency could rise to new heights.