The price of Bitcoin could not stay above $92,000. After it failed to hold that price, it dropped sharply, falling to just over $88,000 yesterday.
Most other cryptocurrencies, often called altcoins, also saw their prices go down. An altcoin is any cryptocurrency that is not Bitcoin. The coins ZEC and CC had some of the biggest price drops.
What Happened to Bitcoin?
The month started on a rough note for Bitcoin. The famous crypto had recovered some of its value after a crash in November and was trading above $91,000.
However, sellers (often called “bears” in the trading world because they believe prices will go down) took over on Monday. They caused a big price drop that pushed Bitcoin down to almost $84,000.
After that big drop, Bitcoin’s price bounced back very quickly. By Tuesday, it was back above $90,000. It kept climbing and tried to break past the $94,000 price level a couple of times. A price level that is hard to break is called a resistance level.
Bitcoin couldn’t get through the $94,000 resistance. The price then pulled back and stayed in the $91,000 to $92,000 range. But on Friday, sellers took control of the market again after some economic news was released in the U.S.
Bitcoin’s price quickly fell to $88,000. This sudden drop caused a chain reaction, leading to about $500 million in liquidations. Liquidations happen when people who borrowed money to bet that the price would go up are forced to sell their crypto at a loss because the price went down instead.
As of right now, Bitcoin’s price is still below $90,000. Its total value, known as market cap, has dropped to $1.8 trillion. Bitcoin’s dominance, which is its share of the total crypto market value, is over 57%.
Other Crypto Coins Are Down Too
Most of the other big altcoins are also losing value.
- Ethereum (ETH) is down 3.4% and is now just a little over $3,000.
- XRP dropped another 2% and is close to falling below $2.00.
- Other popular coins like SOL, ADA, LINK, HYPE, DOGE, XLM, SUI, ENA, PEPE, UNI, and DOT have all dropped in price by 5% to 7%.
The losses were even bigger for ZEC and CC, which both dropped by more than 10%.
In contrast, a few coins like BCH and TRX had small gains.
Overall, the total value of all cryptocurrencies combined has lost about $60 billion in one day. It is now at $3.130 trillion.
