The price of Bitcoin recently demonstrated extreme volatility, briefly dipping below the critical $90,000 psychological support level, marking the cryptocurrency's lowest valuation in seven months. This steep market correction saw the world's largest digital asset plummet approximately 26% of its value from its high point reached in October. The cascading effect of Bitcoin's sharp decline was felt across the ecosystem, contributing to roughly $1.2 trillion being wiped from the overall crypto market capitalization since October 7, reports The WP Times with reference to Telegram.
This profound market slump, which brought Bitcoin down to a valuation of $90,000, is largely attributed to sustained weak risk sentiment driven by factors such as persistent global macroeconomic pressures and ongoing regulatory uncertainty surrounding major financial instruments. The significant 26% reduction from the October peak highlights the vulnerability of the asset class to these external forces. However, despite the fragility, Bitcoin managed to stage a modest recovery on Tuesday, posting a 1.9% rebound and stabilizing around $93,532. This slight bounce suggests underlying demand at the lower price points, though analysts remain highly cautious about the immediate future given the scale of the $1.2 trillion in recent losses.
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