Bitcoin, which is the first-ever decentralized cryptocurrency invented in 2008 (read more about it here), faced a tough time on Monday. It tried to go beyond $90,000 but was pushed back. Since then, its value has been dropping and is now below $86,500. Because of this, it might end the year with a loss.
Other major cryptocurrencies, also called altcoins (short for alternative coins), are facing a drop too. For example, XRP, which is a cryptocurrency that’s known for fast and cheap transactions, fell further away from its support level of $1.90. Ethereum, the second-largest cryptocurrency and the native token of the Ethereum blockchain platform, is also struggling and is now getting close to the $2,900 level.
Bitcoin Falls Below $87K
Bitcoin had a rocky ride at the end of last week. The main reason for these ups and downs was the release of the Consumer Price Index (CPI) data in the US for November. This is a measure of how much the prices of daily goods and services are changing, and the new numbers were better than people expected.
When the CPI data came out, Bitcoin’s price jumped to $89,500 briefly. But very quickly, its value dropped to $84,400—a low it hadn’t seen for many weeks. However, buyers (also known as bulls) helped Bitcoin regain some of its lost value, bringing it up to over $89,000 again.
When the weekend arrived, not much changed in the cryptocurrency market. On Monday, though, Bitcoin’s price climbed once again, crossing $90,400. Unfortunately, this upward movement didn’t last long. Sellers (or bears) quickly stepped in and pulled the price down. Since then, Bitcoin has lost over $3,000 in value and is struggling to stay above $87,000.
Bitcoin’s overall value, measured by its total market capitalization, has dropped to $1.730 trillion, according to CoinGecko, a platform that provides cryptocurrency prices and rankings. Despite this drop, Bitcoin still dominates more than 57% of the cryptocurrency market, meaning it’s much larger than any other coin.
(This graph, from TradingView, shows Bitcoin’s price changes on December 24.)
Altcoins Also Struggle
Other popular cryptocurrencies are not doing well either. Ethereum, which had crossed $3,060 a couple of days ago, is now down to $2,920 after a drop of 1.5% over the last day. Binance Coin, or BNB, which is linked to the world’s largest cryptocurrency exchange, was valued at $870 but has since fallen to $835.
XRP has now lost its important support level of $1.90, with another 1.5% drop in the past day. Other altcoins like SOL (Solana), DOGE (Dogecoin), ADA (Cardano’s native coin), BCH (Bitcoin Cash), and ZEC (Zcash) have also lost value. Their prices have gone down by as much as 2% in just one day.
A cryptocurrency called TAO had an even worse day, losing 5.5% of its value. On the bright side, another cryptocurrency named CC has gained 6.5%, now being worth $0.09 per token.
Pi Network Token Shows Strength
The native token of Pi Network, a project aiming to let people mine cryptocurrency using their smartphones, has been performing better than most other coins. Its value stayed strong at $0.20 after going up by 1.5% in just one day.
Market Takes a Hit
Altogether, the total value of all cryptocurrencies combined, known as the cryptocurrency market capitalization, has dropped significantly. It lost over $100 billion in value since the peak on Monday. The current total market cap is now $3.020 trillion, according to CoinGecko.
(This image, from QuantifyCrypto, shows an overview of the cryptocurrency market on December 24.)