Crypto Market Down: Just a Correction Phase or the End of the Bull Run?

The crypto market experienced a slight decline last weekend, impacting giants such as Bitcoin, Ethereum, Solana, and XRP. Does this decrease mark the end of the bull run, or is it just a correction phase?

Decline in the Crypto Market

The market capitalization of the crypto market experienced a slight drop over the weekend. After reaching a peak of $1.605 trillion during the week, it went down to $1.526 trillion at the close of last Sunday, representing a decline of about 5%.

Among the biggest losers, Bitcoin saw a 2% drop in its value, falling to $41,050. Indeed, since its annual peak of $44,747, the leading crypto seems to be on a constant downtrend. Other cryptos like Solana, Avalanche, and Ripple are following the same trend, with respective declines of 12%, 13%, and 6% from their Friday peaks.

📉 #Crypto has seen a mild slide in its final non-holiday weekend of 2023. #Bitcoin has dropped back to $41.6K, while #Ethereum is faring a bit better as it hangs just above $2,200. #InternetComputer has been the outlier, more than doubling its market cap in a week.

(Cont) 👇 pic.twitter.com/c0lhlrrwgA

— Santiment (@santimentfeed) December 17, 2023

According to Santiment on X (Twitter), Ethereum is holding up better than BTC. In fact, Ether closed the weekend maintaining above $2,200. However, there is a drop of 6.15% on ETH since its Friday peak. According to the chart published by Santiment, the crypto market is down, with the exception of Internet Computer which doubled its market capitalization in a week.

Simple Correction or End of the Bull Run?

The uptrend in the crypto market has experienced a slowdown since December 11, and this continued over the last weekend. Is this the end of the bull run or just a simple correction? According to a post by Glassnode on December 12, the rise of BTC seems to have met resistance, and several indicators suggest a degree of short-term fatigue, which could explain the current correction.

On the other hand, Willy Woo, another well-followed crypto analyst on Twitter, indicates that investors are currently not inclined to sell. This could suggest a further rise if selling pressure is not yet sufficient.

While some believe that the bull market is coming to an end, others see it as just a simple phase of correction. In any case, the arrival of Bitcoin ETFs, as well as the fast-approaching Bitcoin halving, are likely to have significant impacts on the crypto market.