Introduction
The cryptocurrency market faces renewed pressure as Bitcoin fails to sustain momentum above $88,000, dropping to $86,000 and dragging the total market capitalization toward the $3 trillion threshold after a $30 billion overnight decline. This bearish turn follows Bitcoin’s rejection from highs near $94,500 last week, casting uncertainty across major assets like Ethereum and XRP, while selective altcoins like Pi Network’s PI token show tentative signs of recovery amidst the broader slump.
Key Points
- Bitcoin has declined approximately 9% from recent highs near $94,500 to current struggles at $86,000.
- The total cryptocurrency market lost $30 billion in value overnight, approaching the $3 trillion psychological level.
- Pi Network's PI token shows recovery signs after dipping below $0.20, while ASTER leads losers with an 8.5% decline.
Bitcoin's Sharp Retreat from Recent Highs
Bitcoin’s price action has turned decisively negative, with the asset struggling to hold above $86,000 after being stopped at the $88,000 resistance level. This represents a significant decline of approximately 9% from the recent highs near $94,500 that BTC challenged on multiple occasions just a week ago, around the time of the U.S. Federal Reserve’s interest rate decision. The subsequent rejections, particularly the second one, introduced substantial volatility and uncertainty, triggering a sell-off that first saw Bitcoin defend the $90,000 level before a more severe plunge on Monday afternoon to just over $85,000.
The failed rebound to $88,000 yesterday underscores the prevailing selling pressure. Bitcoin’s market capitalization has declined to $1.720 trillion, and its dominance over the altcoin market now stands at just under 57%, indicating a slight retreat in its market share. This price behavior highlights the fragility of recent gains and suggests that the bullish momentum following the Fed’s decision has been decisively broken, leaving the market searching for a new support base.
Broad Market Slump and Altcoin Stability
The bearish sentiment has permeated the broader cryptocurrency market, which lost another $30 billion in value overnight, bringing the total market capitalization perilously close to breaking below the $3 trillion psychological level. However, within this decline, the larger-cap altcoins have exhibited relative stability on a daily scale, with limited dramatic movement. Ethereum (ETH) has slipped slightly to just over $2,900, while XRP has managed to defend its key support level at $1.90. Binance Coin (BNB) remains steady at $860.
Beyond these majors, performance has been mixed. Bitcoin Cash (BCH) and Monero (XMR) are among the few assets posting the most substantial gains. In contrast, tokens identified as CC and TAO have dropped the most. This bifurcation indicates that while the overall market trend is negative, capital is not fleeing uniformly, with some investors seeking opportunities in specific assets even as the total market cap contracts.
Divergence in Smaller Cap Tokens
The performance of smaller-cap tokens reveals a stark divergence. On the losing side, ASTER leads once again with a sharp 8.5% decline in the past 24 hours, followed by PUMP and ENA. This continued weakness in specific tokens suggests concentrated selling pressure or a loss of confidence in these particular projects amid the broader market uncertainty.
Conversely, a handful of tokens have bucked the negative trend. NIGHT has gained 6%, while SKY and Pi Network’s native token, PI, have both marked 4% increases. PI’s rebound is particularly notable, as it dipped below the $0.20 level yesterday but has since recovered to sit just above that line. This recovery, though modest, provides a contrast to the pervasive declines and indicates that not all narratives are bearish, with selective buying interest emerging in specific ecosystems like Pi Network even as Bitcoin struggles.
📎 Related coverage from: cryptopotato.com