The cryptocurrency market faced significant losses on Tuesday, shedding $182 billion in value as Bitcoin, the largest digital asset by market capitalization, continued its slide from the key $100,000 milestone, CNBC and Forbes report.
By early morning, Bitcoin was down 6.2%, trading at $92,446.38, according to CoinGecko.
The broader cryptocurrency market also declined, with total market capitalization falling to $3.35 trillion. Other major tokens followed Bitcoin’s downward trend. Ethereum (ETH), the second-largest cryptocurrency, dropped 4.2% to $3,346.86, while Solana (SOL) experienced an 8.9% decline to $231.88.
The downturn comes as traders appear to be taking profits following Bitcoin’s strong rally after the US presidential election on November 5, where Donald Trump’s victory revived enthusiasm for digital assets. Despite the current dip, Bitcoin has surged over 30% since the election, driven by optimism surrounding the potential crypto-friendly policies of the incoming Trump administration.
Market analysts attribute the pullback to profit-taking and concerns over high leverage in the crypto ecosystem. Michael Novogratz, CEO of Galaxy Digital, noted the “ton of leverage in the system” and warned of further corrections. He predicted Bitcoin could fall to $80,000 but expressed confidence that it would recover and eventually surpass $100,000, citing strong demand and limited supply.
“Normally you hit $100,000, you bounce off a bit… I would not be surprised if we go much higher in the long term,” Novogratz said.
Adding to market uncertainty is the anticipated resignation of SEC Chair Gary Gensler, expected to coincide with Trump’s inauguration. Under Gensler’s leadership, the SEC pursued legal actions against major crypto firms, creating regulatory hurdles for the industry. Trump’s administration is seen as more supportive of cryptocurrency, with many cabinet members reportedly holding digital assets.
This political shift has fueled speculation about a “paradigm shift” in crypto regulation, which could influence market sentiment in the months ahead.
Technical analysts are closely monitoring Bitcoin’s momentum. FxPro analyst Alex Kuptsikevich noted that Bitcoin’s recent dip below $93,000 could lead to further declines if key support levels are breached. Without stabilization around $91,800, bears could target $87,000 as the next support zone.
Despite the short-term volatility, many market participants remain optimistic about Bitcoin’s long-term prospects. The cryptocurrency market continues to experience strong institutional interest and adoption, which could provide a foundation for future growth.
