Bitcoin’s price recovery has faced another setback, recently reaching a peak of almost $90,000, only to experience a sharp decline of around $3,000 in mere minutes. This trend appears to be reflected across the broader crypto market, with significant cryptocurrencies like Ethereum (ETH) and XRP witnessing downward movements as well. ETH is edging closer to the $2,900 mark, while XRP has dipped to approximately $1.85.
The primary cryptocurrency had an unpredictable week leading up to the Christmas holidays, fluctuating between $85,000 and $90,000 before settling at a local low of $84,400 following the release of the US Consumer Price Index (CPI) data for November. A slight recovery was noted over the weekend, with Bitcoin briefly surpassing the $90,400 threshold on Monday, marking its first rally in about a week. Unfortunately, this upward momentum was short-lived, as bears regained control and pushed the price down again to levels below $87,000.
Christmas celebrations brought minimal volatility in the market, but as anticipated, Bitcoin made another attempt to break out last Friday. This attempt, however, fell short as it couldn’t stabilize above $90,000 and instead dropped dramatically to around $86,500 within an hour. Though Bitcoin has shown a small rebound and is currently priced slightly above $87,000, it remains down by 1.5% for the day. Bitcoin’s market capitalization has gone below $1.75 trillion, while its dominance in the cryptocurrency market holds steady at around 57.5%.
In the altcoin arena, Ethereum struggled to breach the $3,000 barrier and is now testing the $2,900 support level. XRP, meanwhile, is struggling to maintain its ground, having fallen below its support level of $1.90. Among the larger-cap altcoins, Dogecoin (DOGE) has seen the most significant decline, followed closely by Chainlink (LINK).
Conversely, some cryptocurrencies have marked noteworthy gains. Monero (XMR) and HYPE have seen modest increases, while ZCASH (ZEC) has surged more than 13%, surpassing the $500 milestone. RAIN has also posted considerable gains, rising nearly 10% to approach the $0.008 mark.
Despite these fluctuations, the total cryptocurrency market capitalization has held above the $3 trillion threshold, although it lost approximately $40 billion since reaching its peak yesterday. Investors and analysts continue to monitor these developments in the volatile crypto market closely.
