Bitcoin, which seemed poised to break the $100,000 mark for the first time in history, fell to a low of $90,000 on Tuesday.
It experienced a decline for two consecutive days, dropping to $91,433.54.
As of 12:30 PM Eastern Time, it was trading at $93,832.00, down $1,110.20 (1.17%) compared to 24 hours earlier.
CNBC reported that the CoinDesk 20 index, a benchmark for cryptocurrency market trends, plummeted nearly 6%.
Stocks tied to cryptocurrencies also showed a downward trend.
Shares of cryptocurrency exchange Coinbase fell $4.95 (1.59%) to $307.27, while MicroStrategy, known for its significant Bitcoin holdings, tumbled $20.06 (4.97%) to $383.39.
Matty Greenspan, founder of Quantum Economics, stated, “Bitcoin has surged sharply since the election day,” noting, “It has barely experienced any declines.”
However, Greenspan explained that the $100,000 level has become a psychological barrier, and the current price drop is necessary to conserve energy for breaking through this threshold.
He emphasized that this short-term decline helps build momentum for future gains, and once the $100,000 level is breached, it could signal the start of a major bull market.
Since the U.S. presidential election on November 5, Bitcoin has been consistently breaking its all-time highs, charging ahead relentlessly.
While long-term investors, tempted by the rapid price increases, have been taking profits, the influx of new capital into Bitcoin ETFs has so far absorbed this selling pressure, maintaining the cryptocurrency’s upward trajectory.
However, the five-day streak of increasing fund inflows ended on Monday, resulting in a significant outflow of $438 million.
