The cryptocurrency market took on a volatile appearance again as it approached the last days of the year. Although Bitcoin’s gradual recovery process approached the $90,000 mark, it was once again interrupted by harsh sales. The leading cryptocurrency, which experienced a withdrawal of approximately 3 thousand dollars within minutes, reinforced the cautious stance of investors. This move put downward pressure not only on Bitcoin but also on altcoins with high market caps.
Why Did Bitcoin Struggle at $89,500?
The week before Christmas was quite active for Bitcoin. The price fluctuated wildly between $85,000 and $90,000 within a few days. BTC, which fell to $ 84,400 after the November inflation (CPI) data announced in the USA, signaled a recovery with the purchases made over the weekend. The price, which rose above $90,400 last Monday, initially created a permanent upward impression.
However, like previous attempts, this breakthrough did not last long. As the selling pressure increased rapidly, Bitcoin fell below 87 thousand dollars. While the markets were calm on Christmas Eve and Christmas day, another attempt to rise occurred on Friday. This time, before even $ 90 thousand was seen, the price dropped to $ 86,500 in less than an hour. Although there has been a partial recovery, Bitcoin is trading with a loss of approximately 1.5% on a daily basis. While the market value fell below $1.75 trillion again, Bitcoin’s dominance over altcoins stabilized at 57.5%.
Divergence in Altcoins: Sharp Falls and Surprise Rises
The weak outlook in Bitcoin was also reflected in large-cap altcoins. While Ethereum failed to surpass the $3,000 level, the price retreated towards the $2,900 support. XRP, on the other hand, is trading around $1.85, falling below the $1.90 support. While DOGE was the major altcoin that suffered the hardest loss of the day, LINK was also among the projects that experienced a decline.
On the other hand, despite the sales atmosphere that spread throughout the market, remarkable increases were observed in some projects. While ZEC gained more than 13 percent and rose above the $500 level, RAIN also stood out with an increase of approximately 10% on a daily basis. Positive, albeit limited, price movements were observed in projects such as Monero (XMR) and HYPE. Although the total crypto market value decreased by approximately $40 billion in the last 24 hours, it managed to stay above the $3 trillion threshold.
On the other hand, another important development talked about in the market was the increase in weekly fund inflows to spot Bitcoin ETFs in the USA again. News that some large funds have made limited purchases of crypto assets as part of portfolio balancing before the end of the year is considered a supportive element for the market in the medium term.
The current chart clearly reveals that the search for direction in the crypto market continues. The fact that Bitcoin has difficulty exceeding the $ 90 thousand level indicates that selling pressure may continue in the short term. However, the fact that the total market value remains strong and the sharp increases seen in selected altcoins show that investor interest has not completely disappeared. Although the volume is likely to remain low in the last days of the year, macroeconomic data and ETF-related developments before the new year may be decisive in the course of the market.
