Bitcoin price today crashed after crossing $90000: BTC USD price today falls below $88,000: Why Bitcoin retreats from $90,000, dragging XRP, ETH, SOL lower after Asian rally fades
Bitcoin price (BTC USD) fell below $88,000 today after the rally in the Asian session faded
The world’s largest cryptocurrency by market cap briefly rose above $90,000 before falling below $88,000, according to a report. According to a CoinDesk report, Bitcoin’s pullback has put pressure on the broader crypto market; Major altcoins such as XRP, Ethereum, solana, and dogecoin have also given up on their previous advances.
Altcoins pulled back as the USD decline in Bitcoin price weighed on the crypto market
The CoinDesk 20 Index (CD20), which tracks the performance of the largest digital assets, fell to 2,726; This is roughly the same level as seen in early Asia before briefly jumping to 2,789.
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Weak US stock futures put pressure on crypto prices
The decline in cryptocurrencies reflected weakness in traditional markets. Futures tied to Wall Street’s tech-heavy Nasdaq 100 Index are trading 0.5% lower, signaling a cautious start to the U.S. trading session, according to a CoinDesk report. Market maker Wintermute has previously noted that Bitcoin and Nasdaq tend to share a strong positive correlation, especially during Nasdaq downtrends.
Traders are reducing leverage as Bitcoin futures open interest falls
As prices fell, traders were seen reducing their leveraged positions. Data from Coinglass showed that cumulative open interest in Bitcoin futures worldwide fell to approximately 533,000 BTC from approximately 540,000 BTC earlier in the day. When Bitcoin rose to $90,000, open interest increased from 524,000 BTC.
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BTC USD underperforms during US trading hours
According to the CoinDesk report, Bitcoin has also underperformed during US trading hours in recent sessions. Analysts at the firm pointed to selling pressure associated with year-end tax collection as a possible reason, according to a CoinDesk report.
Year-end tax harvest increases selling pressure on BTC, USD and ETH
Laser Digital analysts wrote: “An interesting trend to note is the significant underperformance in the US time zone (both BTC and ETH are down over 3% during US hours) [last week] “The cryptocurrency has likely been a major underperformer among global assets this year, offset by strength in Asian hours, driven by selling pressure from a year-end tax collection influx,” CoinDesk reported.
Long-term outlook for Bitcoin price is on the rise
Despite the short-term pullback, some market observers remain constructive on Bitcoin’s broader outlook. John Glover, an Elliott wave expert and chief investment officer at crypto lender Ledn, told CoinDesk: “The Bitcoin price chart looks very promising for higher prices in the future, but there is less certainty in the near term. I expect the market to trade sideways towards slight downside in the coming weeks/months and continue to add to long positions in the $71k to $84k range as quoted by CoinDesk.”
FAQ
Why did BTC USD price drop today?
Bitcoin fell as initial gains faded and general weakness in the market put pressure on risk assets.
Did Bitcoin price exceed $90,000 today?
Yes, Bitcoin briefly traded above $90,000 before returning lower.
