Bitcoin and Other Altcoins Fell on Monday Amid Low Trading and Bad Sentiment

Bitcoin and other altcoins took a hit on Monday, and it's not hard to see why. The low trading volume was a major contributor to the decline.

The market sentiment was also quite negative, which didn't help matters. The overall feeling among investors was one of caution and uncertainty.

The low trading volume was a key factor in the decline, as it meant that there were fewer buyers to prop up the prices. This lack of liquidity made it harder for prices to hold steady.

Monday's decline was a stark contrast to the previous week's gains, which had seen many altcoins surge in value.

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Bitcoin took a hard hit in value after the US Federal Reserve's last FOMC meeting for the year, with its price slumping to $92,000 just three days later.

The interest rate slash was expected, but hawkish comments by Chair Jerome Powell turned the market upside down.

Bitcoin's price dumped by a few more grand, slumping to $91,330 on Bitstamp, which became its lowest price tag since November 27.

The subsequent rejections drove Bitcoin's price south hard, making it a tough week for investors.

The altcoins followed suit, with XRP and ADA dumping by over 6%, and many meme coins hit even harder.

Curious to learn more? Check out: Bitcoin Is Approaching Its Most Promising Halving in History.

The overall cryptocurrency market is valued at $3.27 trillion, a decrease of 1.61% from the previous day. This decline is a notable shift in the market's momentum.

Bitcoin has seen a modest decline of 1.42% against the U.S. dollar, while other major cryptocurrencies have experienced more significant losses. XRP dropped by over 3%, BNB fell by 4.27%, and DOGE lost 2.25%.

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The holiday season has brought lower trading volumes to the market, making Bitcoin's price more vulnerable to fluctuations. This is because fewer active traders are in the market, resulting in more sellers than buyers.

The data from Cryptoquant shows that Bitcoin's sell-side liquidity has dropped drastically, reaching a low of 6.6 months of liquidity. This is a sharp decline from October, when the liquidity was at 41 months.

The lower trading volume has been a major factor in keeping Bitcoin's price in a consolidating range until the start of the new year. This could indicate that the market is waiting for a catalyst to push the price up.

The decline in liquidity could signal a shift in regional trading activity, as the Kimchi premium in South Korea has decreased from 3.38% to 1.3% as of December 29. This premium occurs when Bitcoin prices in South Korea are higher than in other countries due to local demand.

Tether (USDT) is the dominant asset in Bitcoin trades, making up a significant portion of all Bitcoin trades.

The U.S. dollar is the second most popular trading pair for Bitcoin, indicating a strong demand for the cryptocurrency.

FDUSD and USDC are also notable trading pairs for Bitcoin, but they trail behind the U.S. dollar in terms of volume.

Interestingly, the Korean won still accounts for 2.09% of all Bitcoin trades, showing the continued influence of South Korean traders in the global Bitcoin market.

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The broader crypto market took a hit on Monday, with a 1.61% decrease in value to $3.27 trillion.

Bitcoin's decline was relatively modest, falling by 1.42% against the U.S. dollar.

Other major cryptocurrencies, however, suffered more significant losses, with XRP dropping by over 3%, BNB falling by 4.27%, and DOGE losing 2.25%.

Some tokens managed to buck the trend, with Phala Network (PHA) standing out as the day's top performer, gaining 18.26%.

The FTX Token (FTT) also saw a surprising uptick, surging by 12.77%, despite the ongoing issues surrounding the now-defunct FTX exchange.

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The price of Bitcoin and other altcoins took a hit on Monday, and there are several possible causes that contributed to this downturn.

The global economic uncertainty was a major factor, as investors became increasingly risk-averse due to the ongoing trade tensions between the US and China.

The decline of the US stock market, which saw a 500-point drop, also had a ripple effect on the cryptocurrency market.

Investors were spooked by the news of a potential recession in the US, which led to a sell-off of assets, including Bitcoin.

The lack of clear regulations and guidelines for cryptocurrency trading also added to the uncertainty, causing investors to lose confidence.

The increasing competition from other cryptocurrencies and the rise of new players in the market also put pressure on Bitcoin's price.

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