Bitcoin recently experienced a significant drop in value below the $100,000 mark. The S&P 500 index and gold prices also corrected by around 3% and 10% respectively from their highest positions. According to CoinGecko data, on Wednesday, the price of Bitcoin briefly touched an intraday low of $99,110 before recovering slightly. Overall, the price of Bitcoin has fallen about 21% from its peak in October.
As reported by Yahoo Finance on Wednesday, the global crypto market capitalization has declined and is now around $3.44 trillion, the lowest level in the past four months. The massive selling pressure in the crypto market has led to over $2 billion in digital assets being liquidated. This situation has created significant pressure over the past two days, accompanied by widespread deleveraging.
The main concern for investors in the current market condition is not just about the cause of the price drop, but also how far the price could continue to decline. Senior Research Analyst at Tiger Research, Ryan Yoon, predicts that Bitcoin will remain around $98,000 and maintains a long-term target of $200,000.
Senior researcher at HashKey Group, Tim Sun, believes that the selling pressure indicates a significant shift in market dynamics. He noted that investors are now more cautious in taking risks amid increasing volatility. Bonds are the only asset that has shown an increase, while Bitcoin, gold, and stocks have all declined simultaneously. Sun added that the $85,000 level could serve as a strong support for Bitcoin if the selling pressure persists.
