Bitcoin, the king of cryptocurrencies, took a tumble on Tuesday, dropping below the $101,800 mark. This decline came just a day after Donald Trump’s inauguration as President of the United States, a moment that had many in the crypto world buzzing with excitement.
By 11:42 AM IST, Bitcoin was trading at $101,739, down 0.8%. It even hit a low of $100,103 during the day. Ethereum wasn’t spared either, slipping 0.7% to $3,248. The overall global crypto market cap fell slightly by 0.12%, now sitting at $3.51 trillion.
The downturn didn’t stop with Bitcoin and Ethereum. Other major altcoins also felt the pressure. Solana dropped 2.5%, BNB fell by 1%, and XRP decreased by 0.4%. Dogecoin took a significant hit, plummeting 6%, while Hedera and Shiba Inu fell by 4.36% and 3.3%, respectively. Newly launched tokens like OFFICIAL TRUMP and Melania Coin saw even steeper declines, plunging 44% and 62%.
Just a day before, Bitcoin had soared to a record high above $109,000, fueled by hopes surrounding Trump’s presidency and his plans to ease regulations in the crypto space. However, that optimism quickly faded. Edul Patel, CEO of Mudrex, explained, “Bitcoin is consolidating near $102,000 after reaching a new all-time high, as Trump’s inauguration speech had no mention of Bitcoin.” He noted that Bitcoin’s resistance level is at $104,600, with support at $100,500.
Despite the dips, market sentiment remains strong. The Crypto Fear and Greed Index is still in “Extreme Greed” territory, holding steady at 76. Vikram Subburaj, CEO of Giottus, commented on the current climate, saying, “Bitcoin and crypto will likely be volatile this week before settling on a trend.”
In trading volume, stablecoins are dominating the scene, making up 92.82% of the total 24-hour volume, which stands at $291.99 billion. Bitcoin’s market cap has now dropped to $2.017 trillion, with its dominance at 57.87%. Interestingly, Bitcoin’s trading volume surged by 35.8% in the last 24 hours, reaching $124.26 billion.
As the crypto market navigates these ups and downs, investors are left wondering what lies ahead for Bitcoin and its peers. The coming days will be crucial in determining whether this dip is just a temporary setback or a sign of more significant challenges to come.
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