TechFlow news, December 19: According to SoSoValue data, the cryptocurrency market saw broad declines today, with nearly half of all sectors dropping more than 10%. Specifically, BTC and ETH fell by 5.14% and 6.11% over the past 24 hours, respectively. The CeFi sector declined by 5.17%, while the NFT sector—which had surged over 20% yesterday—dropped by 6.01%. Additionally, Layer 1 fell by 8.14%, Layer 2 by 9.37%, DeFi by 10.55%, Meme tokens by 11.33%, and both DePIN and PayFi sectors dropped by 11.48% and 11.69%, respectively. Despite the overall downturn, some projects stood out positively: Pudgy Penguins (Pengu) in the NFT sector rose by 9.54%, Moca Coin (MOCA) increased by 10.25%, and AI Rig Complex (ARC) in the AI Agents category surged by 54.22%.
Regarding the reasons behind the broad market correction, SoSoValue analysts suggest that today's Federal Reserve meeting may have contributed significantly. The Fed revised its outlook for interest rate cuts next year from four cuts to just two, raised projections for core PCE inflation and GDP growth, and Chair Powell delivered a more hawkish-than-expected statement. These developments intensified market fears over future liquidity conditions, triggering widespread selling across crypto sectors.
