.png){kind=logo}
The cryptocurrency market is ending 2024 cautiously, showing resilience despite varying performances from leading digital assets. Bitcoin, Ethereum, and Binance Coin look good, while XRP and Cardano are struggling. Major macroeconomic factors that have impacted these swings include a strong US dollar and reduced year-end liquidity.
Bitcoin (BTC) leads the pack at $92,530.19. It has lost 0.89% in the last 24 hours. However, the year-to-date growth is spectacular at 120%. In terms of trading volume for the last 24 hours, it stands at $55.49 billion, while the market cap is at $1.832 trillion.
The price movement of the cryptocurrency can be deemed inversely proportional to that of the US Dollar Index (DXY). The dollar is indeed strengthened by the expectations in the new US administration from policy changes. This remains the headwind for digital assets. Bitcoin, in particular, has shown incredible strength as more people prefer putting their money into it.
ETH is priced at $3,340.86, recording a 1.57% drop from its price yesterday after 24 hours of trading. Its trading volume is $25.64 billion, with a market value of $402.48 billion. Thus making it the second-largest cryptocurrency in terms of market value.
The ecosystem of Ethereum has expanded quite remarkably in 2024 because of dApps development and increased staking. However, low activity during holiday seasons combined with profit-taking led to its recent downtrend.
XRP is under new selling pressure, trading at $2.02, with a drop of 3.03% in the last 24 hours. Its trading volume is $6.46 billion, with a market cap of $116.36 billion. XRP is focused on cross-border payments, which is beneficial for long-term investors.
Short-term prospects are affecting investor confidence. However, XRP’s partnerships with financial institutions keep it relevant for long-term investors.
One of the standouts is Binance Coin (BNB), which is trading at $702.45 with a 1.21% increase in the last 24 hours. BNB's trading volume is $1.77 billion. It currently has a market cap of $101.34 billion, which is pretty impressive.
The growth in BNB is also supported by the role of the Binance Smart Chain in DeFi and NFT adoption. Thus showing its growing utility in the cryptocurrency space.
Solana (SOL) is trading at $189.19, with a 0.61% loss in the last 24 hours. It is trading in the $3.21 billion volume with a market capitalization of $90.91 billion. It shows that SOL is entering the consolidation phase after achieving technological progress over one year.
Solana's approach of scalability with low transaction costs attracted several developers. Still, cautious market sentiments are dampening its short-term performance.
Dogecoin (DOGE): The cryptocurrency is trading at $0.3111, down by 2.19%. This fluctuation is driven by social media trends and speculative demand.
Cardano (ADA): Currently trading at $0.8447, it has fallen by 3.03%. Cardano blockchain remains unable to sustain the gains despite the fan base.
TRON (TRX): The cryptocurrency is trading at $0.2528 with a decline of 2.05%. This shows the overall market weakness during the holiday season.
Wrapped Bitcoin (WBTC): Trading at $92,402.88, WBTC is down by 1.02%, following Bitcoin’s movement closely.
Avalanche (AVAX): Its current price is $35.14, down by 3.22%. It is still a strong contender with its high throughput and interoperability.
Mixed performance for the cryptocurrency market is due to the following macro pressures:
U.S. Dollar Strength: A strong dollar has been a challenge, especially for Bitcoin and Ethereum.
Year-End Liquidity: This is when people are on holiday. It reduces the trading of the markets.
Profit-Taking: Investors lock their profits, which also causes short-term price drops.
Despite the above challenges, cryptocurrencies are gaining momentum driven by technological innovation and institutional adoption.
The cryptocurrency market's closing outlook for 2024 shows both challenges and opportunities for the dynamic year ahead.
