Bitcoin Price Dips Below $91,000 Amid Crypto Market Selloff
U.S. stock markets were closed in remembrance of former President Jimmy Carter, while crypto markets continued to experience volatility ahead of the December employment report.
Key points:
- Bitcoin price fell to around $91,000, down approximately 3% in 24 hours.
- The CoinDesk 20 Index also showed declines, with notable drops for solana and chainlink, both falling by double digits.
- A previous rally in Q4 2024 was influenced by Donald Trump's election and expectations of favorable regulations.
- Recent economic reports indicated stronger-than-expected growth and inflation, leading to rising long-term interest rates.
- Market anticipation for the December jobs report could shift focus from potential rate cuts to possible rate hikes.
Price Support Levels
- Trader Eugene Ng Ah Sio noted that Bitcoin is revisiting December 5 lows, suggesting further declines may cause panic.
- The next support level for Bitcoin is projected at $85,000 if it fails to maintain $90,000.
- Joe McCann suggested a possible target of $75,000 if the $90,000 line does not hold.
- Trader Skew indicated that recent price drops might be linked to Silk Road-related bitcoin sales but noted strong bid liquidity exists below current prices.