The ongoing market-wide crypto price crash has many investors, old and new, wondering what’s happening and when it will end. Are traders liquidating their portfolios to fund Christmas shopping and holiday expenses? It’s a bitter pill to swallow after Bitcoin recently hit six figures for the first time in history and is projected to double next year . The festive season typically brings an increase in consumer spending to cover gifts, travel, and other holiday-related costs. For traders who have recently profited from crypto investments, selling digital assets could provide quick liquidity without needing to borrow or dip into savings. However, the truth of crypto’s latest crash is more likely to be related to macroeconomic pressures that have rocked the market since the Federal Reserve’s December 18 meeting. How The Fed Crashed Crypto Prices After the Fed’s last meeting, Jerome Powell announced the US central bank was cutting rates by 25 basis points for the third time in a row after hiking them by the same amount eleven times. Normally, reducing borrowing costs tends to drive crypto prices up since investors move to a more risk-positive outlook. However, at the same Fed meeting that announced the rate cut, Powell also put a dampener on claims that the incoming Trump Presidency could stockpile a Bitcoin strategic reserve through the central bank, saying that currently, federal laws forbid it from doing so, but a Congressional decision could still make it happen. He also said that while inflation has begun to cool, it remains above the Fed’s 2% target. He cautioned that the Fed’s policy rate is, for now, “meaningfully restrictive” and that future rate cuts would depend on “further progress on inflation.” It wasn’t just crypto that was affected, stocks tumbled after the meeting too. Bitcoin ($BTC) is leading the crypto crash. As we can see below, everyone follows the market leader, who has been in free fall since the announcement. Its relative strength index (RSI) is currently 37 and falling and has spent most of the last five days below 50, indicating heavy and continued selling pressure. Source: TradingView It’s unclear how long this state of affairs will continue, but many are hoping some post-Christmas dip-buying, together with preparations for pro-crypto Donald Trump taking office, should help the market recover. Best Wallet makes traders more resilient While money exits the mainstream crypto market and crashes prices, investors appear to be channeling it into cutting edge projects that are still only in presale. Best Wallet’s $BEST token has just launched an ICO that has been profiting consistently through the downturn. It has already raised around $5.4 million in its early weeks. With cryptocurrencies gaining mainstream traction, demand for user-friendly wallets is skyrocketing, positioning Best Wallet as a key market player. Designed as a multi-chain, non-custodial wallet without KYC requirements, Best Wallet addresses common user frustrations with outdated solutions like MetaMask and Trust Wallet. $5M Raised—The Momentum is Unstoppable! Built for those who want early access, insights, and unmatched tools, this is where you want to be. Next stop: $10M—don’t get left behind! Download Now https://t.co/oDRZYzTCMh pic.twitter.com/hRTethTlsb — Best Wallet (@BestWalletHQ) December 19, 2024 Supporting over 60 blockchains—including Bitcoin, Ethereum, and Solana—Best Wallet integrates these via Onramper, reducing the need for multiple wallets and centralized exchanges. Its decentralized exchange, Best DEX, provides fast, cost-effective crypto swaps, perfect for quickly moving to stablecoins when the market is crashing. The $BEST token offers ecosystem benefits, such as access to presale tokens, reduced fees, enhanced staking rewards, and governance voting, allowing holders to shape project decisions. Its presale aggregator has helped projects like Pepe Unchained raise $73.7 million before a 200% token surge. Additional features include a staking aggregator, the soon-to-launch Best Card with 8% cashback, iGaming partnerships, and tools like Portfolio Management. Growing rapidly in the $11 billion wallet market, $BEST is a microcap token with high-return potential. Its self-custody wallet solution will also help any investor stay savvy enough to weather any crypto crash. To keep up to date on all the latest developments, follow Best Wallet over on X and Telegram . The post Why Are Cryptos Crashing? Are Traders Selling Their Cryptos to Buy Christmas Gifts? appeared first on Cryptonews .
