Major Cryptocurrencies on a Downtrend, Is This Year Santa Rally Off the Table?

- Dogecoin drops 23% over the past week - Bitcoin declines 12% from recent high [Unblock Media] The cryptocurrency market has experienced significant fluctuations over the past few days. For instance, Dogecoin has plummeted nearly 23% in the past seven days, marking a substantial decline. Currently, the price of Dogecoin stands at $0.267, the lowest in a month. Dogecoin had once recovered to $0.35, but this rebound faded over the weekend. This price movement is attributed to several factors, including the speculation of an interest rate hike by the U.S. Federal Reserve, the massive sell-off of Bitcoin by major institutional investors, increased competition within the meme coin market, and a decline in trading volume. Meanwhile, Bitcoin (BTC) has dropped 12% from its recent high, with its price falling sharply over the past five days. The current actual price of Bitcoin is approximately $95,820, which is a significant drop from its record high of over $108,000 set on December 18, 2024. Bitcoin's price movement has been influenced by various external factors, such as statements from major financial institutions, regulatory announcements, and market sentiment. Additionally, XRP has declined 9% over the past week, now standing at $2.21. This is a sharp decline from the $2.82 recorded a month ago, which had marked the highest level in seven years. Other cryptocurrencies experiencing significant declines include Ethereum, Solana, and Cardano. Ethereum has lost 16% of its value, Solana 18%, and Cardano 19%. These fluctuations reflect the market's instability. Dogecoin's losses have also impacted other meme coins. While Dogecoin dropped 23%, Dogewithhat (WIF) fell 32%, Floki (FLOKI) and Pepe (PEPE) each declined 27%. Shiba Inu (SHIB) similarly registered a 23% drop. Especially, the market share reduction and trading volume decrease among competing coins reflect weakened investor sentiment across the entire meme coin market. Dogecoin's decline negatively affected investor sentiment, which in turn adversely impacted sentiment towards other meme coins. These market fluctuations seem to be triggered primarily by market psychology and investor responses. It is important to note that various factors, including economic, political, and social elements, as well as recently announced regulatory measures and statements from major financial institutions, significantly influence these fluctuations. Cryptocurrencies remain a highly volatile investment vehicle, requiring careful consideration and analysis of these factors.