Bitcoin Dip Hits Altcoins Hard With ETH Down by 18%, XRP Down by 21% and SOL Down by 20%

Bitcoin’s price correction dragged major altcoins with it with the global crypto market cap decreasing by 9.53%.

Major Altcoins Follow BTC Dip

Bitcoin‘s price correction extended into Friday, Dec. 20, as the number one crypto continued to shed its recent gains. Over the past 48 hours, BTC has dipped by over 13%, dropping from an all-time high of $108,364 to $92,118 before rebounding slightly to trade at $95,800.

The significant market correction was largely influenced by the U.S. Federal Reserve’s recent “hawkish” 0.25% rate cut along with investors fleeing to the comfort of safer investment assets.

Altcoins have followed BTC in registering significant corrections. Ether (ETH) dropped by 18% from $4,032 to $3,115. Similarly, XRP tumbled from $2.6 to $1.96 for a 21% dip, BNB dropped by $736 to $620 for a 16% dip, and SOL rounded up the top four cryptos with a 20% drop from $225 to $177.

In the futures market, over 400,000 crypto traders saw $1.4 billion worth of short and long positions liquidated, according to data from Coinglass. This led to the global crypto market cap decreasing by 12% over the past day with the market cap currently at $3.2 trillion. However, the total crypto market volume rose by 31.47% to hit $33.98 billion with bitcoin’s market dominance increasing marginally to 57.95%.

Despite the market downturn, major cryptocurrencies continued to trade above key psychological levels. This points to a greater resilience of the crypto market, driven largely by institutional interest and bullish market sentiment. As such, this price crash could be a temporary pullback in the bull cycle expected to last up to 2025.