It has not even been a week since the cryptocurrency market was in extreme greed and the prices of Bitcoin and other cryptocurrencies were off the charts. However, since then, Bitcoin has tumbled down aggressively and now is going below the $93K mark.
As it continues to slide below, investors wonder if this is the beginning of the bull market and whether Bitcoin will come down to $90K.Â
Bitcoin’s Price Actions
Bitcoin is down by more than 9% in the last 24 hours and is now trading at $93,907.24 at the time of reporting. The global market cap stands at $1.85 trillion, which is also down by 7%. The 24-hour trading volume is, however, up by more than 23%. Bitcoin has come down by more than 6% in the last 7 days.
Bitcoin has experienced a remarkable surge this year, more than doubling its price and reaching an all-time high of over $108,000 earlier this week. This unprecedented rally has been fueled by several key factors, including the launch of spot exchange-traded funds (ETFs) and the political climate surrounding the U.S. presidential election.
With Donald Trump’s victory, his pro-crypto stance has provided additional momentum, further boosting investor confidence in the digital asset.
Why is Bitcoin Coming Down?
Despite its recent rally, Bitcoin has experienced a sharp sell-off after reaching its all-time high. This correction comes as some market participants grow cautious amid concerns over the U.S. Federal Reserve’s monetary policy.
Rising interest rates and the potential for tighter policies have created uncertainty in the broader financial markets, causing some of the enthusiasm that had driven Bitcoin’s rise to cool off.
Also Read: Bitcoin Declared a Capital Asset by India’s Income Tax Appellate Tribunal in Major Ruling
Bitcoin’s recent price drop has had a significant impact on the overall cryptocurrency market. The drop in Bitcoin’s value has contributed to an 8.71% decline in the total market capitalization, which now stands at $3.22 trillion.
Despite the downturn, the cryptocurrency market is seeing increased trading activity, with trading volume rising by 30%. This surge in volume can be attributed to an incoming of short traders taking advantage of the market correction.
Is $90K Coming?
Bitcoin’s price has often followed certain patterns and technical indicators.
If Bitcoin fails to maintain support levels or if market conditions do not hold back strong, it could trigger further downward pressure.
Technical analysis often shows key price levels, and if Bitcoin falls below crucial support zones, such as $100,000 or $90,000, it could result in further declines.
Also Read: Trump’s Plans To Keep Bitcoin Reserve Might Soon Become A Reality: Will BTC Price Rally Further?