The cryptocurrency market has faced quite a dip over the last few days. Most assets among the top 100 projects by market cap are trading in the red zone in the weekly charts. The global crypto market cap has fallen 1.5% in the last 24 hours to $3.47 trillion.
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Why Is The Cryptocurrency Market Stagnating?
The latest market dip could be due to the Federal Reserve’s hawkish monetary stance. The Fed recently announced that they will have only two interest rate cuts in 2025 instead of three. Rate cuts usually lead to investors taking on more risks as borrowing becomes easier.
The cryptocurrency market may quickly rebound after President-elect Donald Trump announced more bullish policies. Trump named Bo Hines the executive director of the upcoming Presidential Council of Advisers for Digital Assets. This council is also called the “Crypto Council” for short.
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Top 3 Cryptocurrencies To Watch For New Year 2025
1. Solana (SOL)
Solana (SOL) is among the best-performing cryptocurrencies of the last year. The asset has displayed incredible growth since its crash in 2022 after the collapse of FTX. The SOL network has also witnessed stellar growth this year. Many new SOL-based memecoins have taken the crypto community by storm.
SOL could begin to rally as we enter the new year.
2. Ripple (XRP)
Ripple’s XRP token is another cryptocurrency with a lot of growth potential. The asset breached the $2 mark for the first time in seven years. Ripple has also settled its lawsuit with the SEC. Both developments could pave the path for XRP to hit a new high.
XRP may begin another bullish outbreak early next year.
3. Dogecoin (DOGE)
DOGE has experienced quite a rally after Donald Trump’s victory. Trump has also approved the creation of the Department Of Government Efficiency (D.O.G.E.). The launch of this department could lead to a massive price spike for the meme cryptocurrency.
Also Read: Dogecoin Eyeing $1.3 in 2025? When DOGE Could Set New ATH
DOGE may pick up the pace in early 2025 as we get closer to Trump’s inauguration.
