Bitcoin drops to $ 86,000

Over the past day, bitcoin BTC $90,505.66 Mezo Wrapped BTC 0.09% Market capitalization $51.36 million VOL. 24 hours $0.33 billion fell by 4.4% to $ 85,617, and Ethereum ETH $3,096.81 Bridged Ether (StarkGate) 0.14% Market capitalization $71.03 million VOL. 24 hours $0.26 billion dropped by 6.5% to $ 2,915, according to The Block. Other major cryptocurrencies also found themselves in the red zone: BNB BNB $907.83 BNB 1.40% Market capitalization $125.04 billion VOL. 24 hours $0.11 billion lost 4.2%, XRP XRP $2.09 XRP 0.11% Market capitalization $126.88 billion VOL. 24 hours $67.26 million - 6.7%, Solana SOL $135.86 Binance-Peg SOL -0.07% Market capitalization $0.15 billion VOL. 24 hours $0.14 billion - 4.5%.

According to analysts, the crypto market’s decline occurred as investors shifted to safer assets. According to Rick Maeda, a researcher at Presto Research, there were no internal events in the crypto sector, as the sell-off coincided with a drop in US stock indices. In particular, the S&P 500 dropped by 0.16%, the Nasdaq Composite by 0.59%, and the Dow Jones by 0.09%.

Maeda added that liquidity in the market decreases at the end of the year, which makes price movements sharper. According to Vincent Liu, chief investment officer at Kronos Research, concerns about the macroeconomic situation quickly returned to the markets, and the decrease in liquidity and the closure of leveraged positions led to massive selling.

Last week, the US Federal Reserve cut its key policy rate by 25 basis points, the third time in a year. However, according to analysts, this step did not change investor sentiment. Expectations of new data on inflation in the US are forcing traders to act more cautiously, making the market more sensitive to even small trading volumes.

Additional pressure on the market could be caused by the failure of mining farms in the Chinese region of Xinjiang. According to the head of Nano Labs, Jianping Kun, more than 400,000 mining rigs were shut down, which reduced the hashrate of the bitcoin network by about 8%. Nevertheless, experts believe that the impact of the incident is temporary: bitcoin’s fundamentals remain stable, and the main drop is due to the general withdrawal of investors from risky assets at the end of the year.