Analysis: The recent decline in the cryptocurrency market is not due to fundamental factors, but rather investors taking profits at the end of the year

ChainCatcher news, according to Bloomberg, Edward Chin of Parataxis stated, "The recent market decline appears to be investors taking profits at year-end, with no fundamental factors triggering this sell-off." Due to reduced expectations for a Federal Reserve rate cut in 2025, some investors may be choosing to reduce exposure and take profits.

Pepperstone Group's head of research, Chris Weston, wrote in a report, "Technically, caution is warranted in the short term. This does not mean we will see a price crash soon, but the momentum of the rally has clearly weakened, and buyers have lost dominance and control over the market."