Crypto prices are experiencing a slow Monday due to weak US macroeconomic data and rampant profit taking.
Bitcoin (BTC) fell 1.8% in the past 24 hours to $91,800, a price not seen since December 5, the day it topped $100,000 for the first time. The largest cryptocurrency has fallen more than 14% from its December 17 record of $108,278.
Ether (ETH) lost less, falling 0.7% to $3,320, although it is now 17% below its December high, and still has not surpassed the record $4,820 it reached in 2021. Solana (SOL) is also proving somewhat stronger than bitcoin, with the SOL/BTC ratio up 0.35% today.
The CoinDesk 20 — an index of the top 20 cryptocurrencies by market capitalization, excluding stablecoins, memecoins and exchange coins — was also in the red, sliding 3.74%. Ripple (XRP) and Stellar (XRM) took the biggest hit, down 6% and 6.3% respectively, while the most resilient coin besides ether was litecoin (LTC), which is 1.9% lower.
Stocks of crypto-related companies also took a hit. MicroStrategy (MSTR) and Coinbase (COIN) fell 7% and 5.3%, respectively and major bitcoin mining companies such as MARA Holdings (MARA) and Riot Platforms (RIOT) dropped more than 7 %.
The selling pressure was partly caused by investors cashing out after bitcoin rose more than 117% this year. Profit-taking currently exceeds $1.2 billion in the seven-day moving average, and while that’s lower than the Dec. 11 peak of $4.0 billion, it’s still more than average. Additionally, a large portion of the profits are taken by investors who hold bitcoin for years.
Macroeconomics also weighed on the market, with the US Chicago PMI — which measures the performance of the manufacturing and non-manufacturing sectors in the Chicago area — flashing its lowest reading since May, suggesting an economic slowdown is underway.
Uncertainty over the Federal Reserve’s interest rate policy through 2025 is not helping, as the US central bank has signaled it will pause rate cuts until at least March. President-elect Donald Trump’s inauguration, set for January 20, may also play a role. The S&P 500, Nasdaq, and Dow Jones were down more than 1%.
“The market exceeded expectations in 2024, but signs of exhaustion indicate the need for consolidation,” Joe Carlasare, partner at Amundsen Davis, told CoinDesk. “Looking ahead to 2025, I am optimistic but expect the path to diverge from consensus, as markets often do. Bitcoin adoption continues to grow, and I expect it to will generally move in line with traditional markets. If the US avoids a significant growth slowdown, bitcoin should perform well, although the ride may be bumpier than in 2024.”
