On December 31, 2024, Bitcoin (BTC) experienced a significant decline, falling 1.8% to $91,800, marking its lowest price since December 5, when it previously broke the $100,000 threshold. This drop represents a more than 14% decrease from its record high of $108,278 set on December 17, 2024.
Ether (ETH) also saw a decline of 0.7%, now priced at $3,320, which is 17% below its December highs. The CoinDesk 20 index, which tracks the top 20 cryptocurrencies, fell 3.74%, with Ripple (XRP) and Stellar (XRM) experiencing the largest losses at 6% and 6.3%, respectively.
Investor sentiment has shifted dramatically, with the Bitcoin Fear & Greed Index dropping to 65, down from 73 the previous day, indicating a prevailing sense of greed despite the price drop. Notably, profit-taking has surged, with over $1.2 billion in profits being realized in the past week, significantly lower than the peak of $4 billion on December 11.
Macroeconomic factors are contributing to the market's instability, as the U.S. Chicago PMI reported its lowest reading since May, signaling potential economic slowdown. Furthermore, uncertainty surrounding the Federal Reserve's interest rate policy is exacerbating market volatility.