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Bitcoin $89,639 started the week strongly but faced a sharp pullback after failing to break through the $92,000 resistance level, causing it to fall to $88,000. Despite showing signs of recovery after November’s crash, bearish pressure surged once again. The leading cryptocurrency, trading above $91,000 at the start of the week, encountered another wave of selling as the U.S. PCE and core PCE data were released.
BTC Drops Below $90,000
Market data reveals that Bitcoin tested the $94,000 resistance twice within a few days. However, strong barriers prevented a breakthrough, leading investors to take profits and trapping the price between $91,000 and $92,000. U.S. inflation data released on Friday significantly altered the scenario, causing Bitcoin to tumble to $88,000 in minutes. This drop triggered a $500 million liquidation in the altcoin market.
At the time of writing, Bitcoin still trades below $90,000, and its market capitalization has decreased to $1.8 trillion. Nevertheless, Bitcoin’s dominance remains above 57%, indicating a swift withdrawal from altcoin risks by investors.
Red Alert in Altcoins: ZEC and CC Plummet
The sharp movements in Bitcoin led to a widespread selling pressure in the altcoin market. Ethereum $3,035 fell by 3.4%, barely holding above the $3,000 mark, while XRP faced the risk of dropping below $2. Major altcoins like SOL, ADA, LINK, HYPE, DOGE, and XLM experienced losses up to 5%.
ZEC and CC were the hardest hit, suffering double-digit losses as investors engaged in panic selling. In contrast, TRX and BCH managed to stand out with limited gains.
The total cryptocurrency market value fell by about $60 billion in just 24 hours, lowering to $3.13 trillion.
In addition to this downturn in the altcoin sector, Coinbase recently announced regulatory adjustments to certain staking products in response to institutional requests. Experts note that each regulatory move in the U.S. sparks sudden price changes in the altcoin market. The current fragile market structure amplifies the impact of regulatory news.
In summary, the prevailing selling wave in the crypto market once again highlights investors’ sensitivity to macroeconomic data and U.S. regulatory signals. Bitcoin’s inability to surpass $94,000 indicates a technical weakness, while the general weakness in altcoins suggests a significant decline in risk appetite. In the short term, the market’s direction seems to depend on upcoming U.S. economic data and Bitcoin’s ability to reclaim the $90,000 level.
