The cryptocurrency market has experienced a sharp downturn, erasing $200 billion from its market value. Bitcoin (BTC), the flagship cryptocurrency, has plunged to $90,000, marking a significant pullback from its recent peak of nearly $100,000 earlier this week.
Market Panic Wipes Billions
Bitcoin’s decline has sent shockwaves across the crypto ecosystem. The total market capitalisation of cryptocurrencies, which recently stood at $3.2 trillion, has dropped dramatically, sparking concerns among traders. The sell-off comes amid speculation about potential Wall Street disruptions in 2025 and growing leverage in the crypto market.
Analyst Warns of Further Drops
Michael Novogratz, CEO of Galaxy Digital, predicts Bitcoin could retreat further to $80,000 before recovering. “There’s a ton of leverage in the system right now,” Novogratz told CNBC. He remains optimistic about the long-term trajectory, suggesting that Bitcoin will eventually surpass the $100,000 milestone due to limited supply and increasing adoption.
Despite the current correction, Novogratz noted the supportive stance of the incoming Trump administration, which could bring favourable regulatory changes to digital assets.
Technical Levels to Watch
Alex Kuptsikevich, chief market analyst at FxPro, highlighted key technical levels that traders are monitoring. “Bitcoin’s momentum around $91,800 will be critical. Without support here, the next target could be $87,000,” Kuptsikevich explained. The correction follows profit-taking after a strong rally since November 4.
The broader market correction is being attributed to geopolitical tensions and profit-taking behaviour among traders. Renewed attempts to breach the $99,000 mark on Monday were met with increased selling pressure, exacerbating the decline.
While Bitcoin’s short-term performance appears bearish, many analysts and market participants remain bullish about its future. As regulatory clarity improves and institutional adoption rises, Bitcoin is expected to recover and continue its upward trajectory.
