Bitcoin along with other leading cryptocurrencies has encountered substantial selling pressure over the past several hours. Despite the US stock markets showing relative resilience, the cryptocurrency sector’s weakness has become increasingly evident.
After hovering just below $90,000 for some time, Bitcoin saw a sharp downturn at the onset of US trading hours, dipping to around $86,800 during intraday activity. At present, Bitcoin is trading near $87,000, marking a decline exceeding 2% within the last day.
The downward trend was not exclusive to Bitcoin. Ethereum dropped close to $3,000 while prominent altcoins such as Solana, BNB, XRP, Dogecoin and Cardano experienced losses ranging between 2% and 4%. The overall market capitalization of cryptocurrencies also took a notable hit throughout the day.
Bespoke Investment provided an insightful perspective on recent market behavior by analyzing iShares Bitcoin ETF (IBIT). Their findings revealed that holding this ETF after-hours yielded returns of approximately 222%, whereas maintaining positions solely during regular trading sessions led to losses surpassing 40%. This implies that most gains in Bitcoin occurred when US equity markets were closed.
From a technical standpoint, some experts believe this dip might be temporary. Crypto analyst Il Capo described this pullback as a “bear trap” and anticipates a robust rebound soon. He identified $95,000 as an important resistance level; if surpassed decisively, it could renew focus on reaching around $100,000.
The recent price drop triggered significant liquidations across crypto markets — totaling about $468 million in just one day — with long positions accounting for roughly $384 million of these forced sell-offs.
This content does not constitute financial advice.