Crypto Market Loses $180 Billion in One Day as Bitcoin Drops Further from $100,000 Goal
The cryptocurrency market experienced a significant drop of $180 billion in just one day, causing Bitcoin to slide further from the coveted $100,000 mark. As of 5:55 a.m. ET, Bitcoin was trading down 6.2% at a price of $92,446.38, according to data from CoinGecko. The overall crypto market capitalization, which is calculated by multiplying the total number of coins in circulation by their price, plummeted to $3.35 trillion.
Despite this decline, Bitcoin has still seen a rise of over 30% since the U.S. presidential election on November 5. Other cryptocurrencies also saw losses, with Ether dropping 4.4% to $3,330.29 and Solana’s sol token falling 9.3% to $228.31.
Experts have noted that the $100,000 threshold remains a significant psychological barrier for Bitcoin. Mati Greenspan, founder of Quantum Economics, emphasized the importance of this milestone, stating that while breaking through it would be a strong bullish signal, a brief pullback may be necessary to gain momentum.
The recent sell-off in the crypto market was attributed to traders taking profits following Bitcoin’s post-election rally. Brett Reeves from crypto infrastructure firm BitGo highlighted that after reaching new all-time highs, there is typically a period of consolidation before further upward movements.
Despite Tuesday’s drop, Bitcoin’s price has surged due to optimism surrounding the election of former President Donald Trump. Additionally, news of U.S. Securities and Exchange Commission Chair Gary Gensler’s upcoming resignation has added to positive sentiment in the crypto markets.
Overall, while the recent dip may be concerning for some, experts remain optimistic about the future of Bitcoin and the wider crypto market.
