Bitcoin, the world’s most expensive cryptocurrency, has dropped below the $90,000 mark for the first time since January 13. The decline was recorded at $89,626 on the CoinMarketCap platform at 11:25 AM Baku time. This marks a notable 6.55% decrease over the past 24 hours, reflecting significant market volatility.
Alongside Bitcoin, several altcoins have also experienced substantial losses. Ethereum has seen its price dip by 7.68%, Solana's value has plummeted by 13.41%, and Ripple has lost 7.71% during the same period. Such widespread declines are indicative of the challenges facing the cryptocurrency market as investors grapple with uncertainty.
The global cryptocurrency market cap has now fallen to $2.99 trillion, representing a 24-hour loss of 3.60%. This turbulence is attributed to multiple factors, including shifts in global financial dynamics and external pressures, particularly political events surrounding tariffs imposed by former President Donald Trump on Canada and Mexico. According to Edul Patel, CEO and co-founder of Mudrex, "Global financial markets have reacted strongly to Trump's decision to impose tariffs, impacting the crypto market as well." He notes, "While Bitcoin found support near $91,000, altcoins like Ethereum, XRP, and Solana have been hit harder."
The response to the pricing shifts has been stark; many traders and analysts are observing how global financial conditions will evolve. The cryptocurrency market is currently struggling under intense pressure, evidenced by the recent substantial outflows. Avinash Shekhar, Co-founder & CEO of Pi42, highlighted the turmoil: "The crypto market is at acritical juncture as Trump’s tariff threats against Mexico and Canada have unleashed unprecedented fear, leading to record declines. Bitcoin fell to an intraday low of $91,362, signaling uncertainty across the market."
Market sentiment remains cautious as traders are watching closely for signs of recovery. Sathvik Vishwanath, CEO and co-founder of Unocoin, mentions, "Bitcoin is currently consolidatng, with key support at the $88,000 level and current price at $91,000. A break below this point could see a future drop, but there remains the potential for buying interest at the $75,000 mark."
Despite the grim outlook, there is optimism among traders. They are focusing on accumulating during dips, viewing this as long-term investment opportunities. Trade sentiments vary, yet there's hope for reversal as traders remain cautiously optimistic, with key levels at $88,000 for support and $75,000 awaiting interest from buyers.
With the current climate bringing record market fluctuations, cryptocurrency remains speculative and fraught with risk. Experts advise investors to stay alert to developments and exercise caution as the market continues to navigate unpredictable waters amid economic uncertainty.