Bitcoin dropped to nearly 92,000 USD

Bitcoin (BTC) once again lost the $100,000 mark and hovered around the $95,000-97,000 area throughout this afternoon.

At around 7:10 p.m. (7:10 a.m. local time), BTC suddenly plummeted to 92,175 USD per unit, losing 10% in just 24 hours. Compared to the record set on December 17, the world’s largest cryptocurrency lost nearly 16,100 USD. Capitalization also decreased at a similar pace, causing BTC to fall to 8th place in the ranking of the largest global assets.

After that, the market price improved to 94,000 USD. However, this is still a large gap compared to the peak price of 106,500 USD 3 days ago.

Bitcoin’s collapse took place after the market recorded a strong profit-taking phenomenon by the “shark” investor group.

According to data from UK-based investment company Farside Investors, US spot Bitcoin ETFs (a type of fund traded on the stock market, investing mainly in Bitcoin) witnessed large net withdrawals. The highest ever recorded was 679 million USD. CoinTelegraph rates this sale as “purifying”.

However, experts say that the above move helps eliminate excessive speculation in the market. However, long-time market participants still fear that the worse will happen.

About $900 million in digital assets were liquidated within 24 hours, according to data from CoinGlass. Changes in US macroeconomic policy when the US Federal Reserve (Fed) signaled a slowdown in lowering interest rates next year, has cut short the recovery of risky assets on a large scale.

Additionally, Fed Chairman Jerome Powell said that the agency is “not authorized to own Bitcoin” under the Federal Reserve Act. He emphasized that they also have no intention of amending the law to participate in building a cryptocurrency reserve according to President-elect Donald Trump’s idea.

“While it is easy to blame the sell-off on the Fed, we believe that the root cause of the collapse was the market being in an overgrowth state,” said the analysis team of cryptocurrency platform QCP Capital. emphasize.