As of 12:19 p.m., Bitcoin traded 3.5% lower at $94,785, while Ethereum, the second-largest cryptocurrency, rose 1.5% to $3,431.
“The asset dipped to $92,600 intraday before rebounding as spot ETFs saw $500 million in outflows yesterday signaling potential profit-taking. Bitcoin may experience volatility in the short term as $9.4 billion worth of options expire this Friday,” said Vikram Subburaj, CEO of Giottus.
Crypto Tracker
Last week, Bitcoin reached a record high of $99,830, driven by speculation about a friendlier regulatory landscape under Trump.Meanwhile, other major cryptocurrencies also saw declines, including Solana (-5.6%), BNB (-2.7%), XRP (-2.3%), Dogecoin (-5%), Cardano (-6.5%), Tron (-4%), and Shiba Inu(-2.5%). Among the top crypto tokens, XRP surged the most, jumping 24% in the last 24 hours.
The broader cryptocurrency market declined as the dollar index rose 0.18% to 107, supported by US President-elect Donald Trump’s tariff announcements on imports from Canada, Mexico, and China. A stronger dollar typically dampens Bitcoin demand by tightening global liquidity and increasing costs for international buyers.Trump confirmed his plans to impose a 25% tariff on Canadian and Mexican goods and an additional 10% on Chinese imports via a Truth Social post.
Tech view by Sathvik Vishwanath, Co-Founder & CEO, Unocoin
Bitcoin fell from $99,500 to $94,427 despite a 60.55% increase in trading volume. The decline is seen as a potential correction ahead of the next rally.
Key levels to watch include resistance at $95,750 with a potential climb to $96,000 or $98,880 and support at $93,000, $92,500 or $90,000.
The Fear & Greed index fell to 79, cooling market sentiment, while the RSI at 41.70 suggests a respite from recent highs. Upcoming $9.4 billion worth of Bitcoin options expire and US election adds to the uncertainty. Bitcoin’s next move could set the stage for significant volatility.
(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times)