Introduction
Bitcoin’s failure to sustain momentum above the $90,000 threshold has triggered a broad market retreat, with the leading cryptocurrency now struggling below $87,000. This decline has erased over $100 billion from the total cryptocurrency market capitalization, dragging major altcoins like Ethereum and XRP into the red. Amid the widespread downturn, Pi Network’s native token stands out as a rare exception, showing resilience by defending a key support level.
Key Points
- Bitcoin's volatility spiked after US CPI data release, causing a $5,100 swing between weekly high and low
- Total cryptocurrency market capitalization dropped by over $100 billion from Monday's peak to $3.02 trillion
- Pi Network's PI token was among few gainers, rising 1.5% while most major cryptocurrencies declined
Bitcoin's Volatile Retreat from $90,000
Bitcoin’s recent price action has been defined by sharp volatility, particularly following the release of better-than-anticipated US Consumer Price Index (CPI) data for November. The initial reaction saw BTC jump to $89,500, a move that was quickly reversed as the asset plunged to a multi-week low of $84,400 within a 12-hour window. While bulls managed to stage a recovery, pushing the price back above $89,000, the momentum proved fleeting.
The asset’s brief rally on Monday, which saw it touch $90,400 for the first time in five days, was met with immediate selling pressure. This rejection has resulted in a decline of over $3,000, with Bitcoin now trading below $87,000. According to data from CoinGecko, Bitcoin’s market capitalization has fallen to approximately $1.730 trillion. Despite the pullback, its dominance over the broader altcoin market remains firmly above 57%, indicating that the sell-off has been widespread across the sector.
Altcoins Follow Bitcoin into the Red
The negative sentiment emanating from Bitcoin’s price action has engulfed the altcoin market. Ethereum, which had recently spiked to $3,060, has declined by 1.5% in the past 24 hours to hover near the $2,920 support level. Similarly, BNB was halted at the $870 mark and has since retreated to around $835.
Other major cryptocurrencies are also facing losses. XRP has slipped below the crucial $1.90 support level after a 1.5% decline. Solana (SOL), Dogecoin (DOGE), Cardano (ADA), Bitcoin Cash (BCH), and Zcash (ZEC) are all in the red with daily losses of up to 2%. The downturn has been more severe for some, with TAO plunging by 5.5%. The collective decline has pulled the total cryptocurrency market capitalization down to $3.020 trillion on CoinGecko, representing a loss of over $100 billion since the market’s peak on Monday.
Pi Network's Token Defies Broader Market Weakness
Amid the sea of red, Pi Network’s native token, PI, has demonstrated notable resilience. While most assets declined, PI managed a 1.5% gain, successfully defending the $0.20 support level. This performance stands in stark contrast to the broader market trend and highlights isolated pockets of strength even during downturns.
Another outlier was CC, which spiked by 6.5% to $0.09. However, these gains were exceptions in a market largely characterized by selling pressure following Bitcoin’s rejection at higher price levels. The current landscape, as quantified by platforms like QuantifyCrypto, underscores the high correlation between Bitcoin’s price movements and the rest of the crypto market, while also reminding investors that idiosyncratic performances can still occur.
📎 Related coverage from: cryptopotato.com
