The cryptocurrency market continues to be heavily influenced by broader macroeconomic sentiment. With rising expectations of falling inflation, more investors are speculating whether the Federal Reserve will return to the previously hinted terminal rate of 5% in its December announcement. However, current data suggests that achieving this may be challenging. The Fed is cautious about overly stimulating risk markets through projected numbers.
Key Trends in Major Cryptocurrencies
Market dynamics shifted positively following a speech by European Central Bank President Christine Lagarde at 2 AM last night. The surge broke through multiple technical resistance levels, disrupting the previous trend. Ethereum is showing signs of challenging the $1,300 mark, while Bitcoin has climbed above $17,000. Sustaining these levels, however, requires continued momentum.
Tonight’s CPI monthly report is expected to introduce further volatility, making it a critical event for traders and investors.
Changes in Top 10 Cryptocurrency Rankings
The list of top cryptocurrencies has evolved significantly over the past few years:
- Dash, Bitcoin Cash, Litecoin, and Bitcoin SV have fallen out of favor, making room for Ethereum-based assets.
- In the coming years, some Ethereum-linked tokens may decline, while others like Solana, Avalanche, Polkadot, and Cardano could face challenges.
- Binance Coin is likely to maintain its position, and Tron may remain relevant. Polygon and Cosmos could emerge as contenders.
- Litecoin, with its upcoming halving event, is expected to stay in the top 10, while EOS may occasionally reappear.
EOS has entered a low-inflation era after two proposals by "EOS Nation" were successfully passed. Its recent price surge followed Binance’s support for EOS network deposits and withdrawals, though it remains unclear if further developments are planned.
OKX delisted WEMIX spot, margin, and perpetual contracts, highlighting the ongoing trend of failing projects during bear markets.
December 9 News Highlights
- Ankr initiated an airdrop of ankrBNB to all aBNBc and aBNBb token holders.
- The U.S. SEC is intensifying investigations into Coinbase, Binance, and FTX’s U.S. operations.
- NFT startup Metagood raised $5 million in a pre-seed round with participation from Animoca Brands.
- Web3 video platform Shibuya secured $6.9 million in funding led by a16z Crypto and Variant, with Joe Tsai among the investors.
- Ethereum’s "Shanghai" upgrade, enabling staked ETH withdrawals, is scheduled for March 2023.
- BKCoin co-founder was dismissed for misappropriating $12 million in client funds.
- The domain metaverse.eth sold for 99 ETH.
- Chainlink’s staking protocol v0.1 community quota is fully allocated.
- ApeCoin’s official staking contract has exceeded 25 million tokens staked.
- Gnosis Chain completed its merge, transitioning to a Proof-of-Stake consensus mechanism.
- OpenSea will transfer ownership of on-chain creator royalty enforcement tools to CORI.
- A $1 billion equity dispute involving early Aptos investors has been resolved.
Frequently Asked Questions
What drives cryptocurrency price movements?
Cryptocurrency prices are influenced by macroeconomic factors, regulatory news, technological developments, and market sentiment. Events like Federal Reserve announcements or regulatory actions can cause significant volatility.
How do halving events affect cryptocurrencies?
Halving events reduce the rate at which new coins are created, decreasing supply. Historically, this has led to price increases due to scarcity, as seen with Bitcoin and Litecoin.
What should investors consider during a bear market?
During bear markets, focus on projects with strong fundamentals, active development, and real-world utility. Avoid overly speculative assets and consider diversifying your portfolio to manage risk. 👉 Explore more strategies
How does staking work in cryptocurrencies?
Staking involves locking up tokens to support network operations like transaction validation. In return, participants earn rewards. It’s common in Proof-of-Stake blockchains like Ethereum and Cosmos.
What are the risks of investing in new cryptocurrencies?
New cryptocurrencies often face higher volatility, regulatory uncertainty, and technical challenges. Always conduct thorough research and avoid investing more than you can afford to lose.
How can I stay updated on cryptocurrency news?
Follow reputable news sources, official project announcements, and community forums. Staying informed helps you make better investment decisions and anticipate market shifts. 👉 Get real-time tools