Bitcoin (BTC) hit $90,000 for a brief, fleeting moment before dropping back to mid-$ $89,000. The crypto markets have declined over the past 24 hours as the ongoing bull run took a breather, with most major cryptocurrencies in the red over the past 24 hours. BTC is down almost 2% and has slipped below $87,000, and Ethereum (ETH) is down nearly 6% after a strong run that took the price surging past $3,000. The crypto market cap is also down by 3.41% and currently sits at $2.87 trillion.ย
Other major cryptocurrencies that have registered substantial declines include Solana (SOL), Dogecoin (DOGE), Cardano (ADA), Shiba Inu (SHIB), Toncoin (TON), Avalanche (AVAX), Chainlink (LINK), and Polkadot (DOT). The drop can be attributed to prices experiencing a correction after surging for nearly a week or profit booking.ย
Speaking about the recent price action, ChangeNOW CMO Pauline Shangett stated,ย
โGiven the recent bull run, this minor decline is a healthy correction. Weโve seen Ethereum pull back after breaching $3,000, while other major tokens also shed gains. This type of consolidation is essential to prevent overheating and create a solid foundation for further growth. Investors shouldnโt view this as a setback but rather as an opportunity to re-enter positions at lower prices. With BTC back below $87,000 and Ethereum down from recent highs, this dip could pave the way for a steadier, more robust rally.โ
Bitcoin (BTC) Entering Price Discovery Mode?ย
Bitcoin (BTC) briefly touched $90,000, according to data from CoinMetrics, before dropping back. BTC surged through $80,000 in a matter of days following Donald Trumpโs victory in the US elections. Analysts expect BTC to reach $100,000 by the end of the year as markets remain bullish despite witnessing a decline over the past couple of sessions. BTC has gained over 33% since election day, followed by Ethereum (ETH) up 28%. Mike Colonnese, an analyst at H.C. Wainwright, stated,ย
โBitcoin is now in price discovery mode after breaking through all-time highs early last Wednesday morning when it was officially declared Trump won the election. Strong positive sentiment is likely to persist through the rest of 2024, and we see BTC prices potentially reaching the six-figure mark by the end of the year.โ
Trumpโs election promises to make the regulatory environment more supportive and friendly towards crypto has buoyed the crypto ecosystem and investors. Cryptocurrency firms have struggled with a lack of regulatory clarity and butted heads with the United States Securities and Exchange Commission. While Washington considers BTC a safe asset, other cryptocurrencies and crypto firms have been operating in a gray area. Matt Hougan, Chief Investment Officer at Bitwise Asset Management, stated,ย
โThatโs just shifted 180 degrees. Weโre now in a positive regulatory environment. We now have tailwinds from that, and that comes in the case of a market that was already a bull market. Thatโs going to push us higher.โ
Meanwhile, most cryptocurrencies, including BTC and ETH, registered declines over the past 24 hours as prices fell after almost a week of positive sentiment. One of the biggest gainers was Dogecoin (DOGE) which registered a staggering increase of 130% since the election, primarily due to its connection with Elon Musk. In the traditional markets, MicroStrategy cut losses and ended the day 5% higher, while Coinbase dropped 1.5%. Coinbase pushed above $300 for the first time since 2021 on Monday. Analysts believe last week's rally is just the beginning.ย
โIt does seem there is an air gap between the previous all-time highs around $72,000 and $100,000. Its hard to exactly see what would force sellers to come into this market and halt momentum before we get to that level. Of course, there are no guarantees. You could see pullbacks but weโre in a new crypto market cycle, I do think we are right to be bullish and the bias is still on the upside.โ
Is Trump Really Behind The Market Surge?
BTCโs remarkable surge has propelled the cryptocurrency past $80,000 and $85,000, with the asset on the brink of pushing above $90,000. Much of this growth has been fueled by investors who bet on a bull run under Trump. Investors such as Anthony Scaramucci, CEO of SkyBridge Capital and previously a vocal critic of Trump, have acknowledged the impact of Trumpโs victory on the market and BTCโs recent rally. However, not everyone is quick to throw all the credit at Trumpโs feet. Jesse Myers, co-founder of OnRampBitcoin, stated,ย
โYes, the incoming Bitcoin-friendly administration has provided a recent catalyst, but that is not the main story here. The main story is that we are six-plus months post-halving.โ
Myers highlighted that BTCโs halving event created a supply-demand imbalance, where available supply was insufficient to meet the increasing demand. This imbalance led to a price surge to restore equilibrium, a phenomenon seen after every halving event. On the other hand, Peter Schiff, a vocal critic of BTC, dismissed the current rally and reiterated his belief that BTCโs rise was speculative, warning investors of potential risks in the long run.ย
Italy Mulls Lowering Capital Gains Tax On Cryptoย
The Italian government is considering lowering the capital gains tax on crypto from 42% to 28%. According to a report by Bloomberg, the government will likely approve a coalition partnerโs proposal to lower the tax to 28%. The Italian government initially proposed a 42% tax on crypto capital gains, significantly impacting crypto traders and investors. The tax was announced during the 2025 budget presentation as the country tried to leverage investment-based profits to support its economy. However, Italyโs economy minister, Giancarlo Giorgetti, stated last week the government is willing to revise the proposed hike.ย
Bitcoin (BTC) Price Analysisย
Bitcoin (BTC) has seen a marginal correction over the past couple of sessions and witnessed an uptick in volatility. The worldโs largest cryptocurrency briefly pushed above $90,000 before dropping back to $86,707, with the price down almost 3% in the past 24 hours as markets experienced a correction. Trumpโs re-election sparked a frenzy in the crypto market as BTC surged to new all-time highs, buoyed by the prospect of a crypto-friendly government and greater regulatory clarity. Trump had promised to remove current Securities and Exchange Commission Chair Gary Gensler and make America the crypto capital of the world.ย
As we can see in the price chart, BTCโs current bullish trajectory began on election day when it rose over 8% to surge past $70,000 and settle at $75,175. Bullish sentiment waned on Thursday thanks to strong resistance around $76,000. As a result, BTC registered only a marginal increase and settled at $75,776. The price went above $76,000 on Friday, registering an increase of 0.92% and settling at $76,470. The weekend began with BTC registering a marginal increase before bullish sentiment intensified on Sunday, allowing BTC to register an increase of almost 5% to go above $80,000 and settle at $80,152.
Source: TradingView
The cryptocurrency rocketed 9% on Monday, surging to a new all-time high of $88,398 before declining marginally and settling at $87,706. Tuesday saw considerable volatility as BTC reached a new all-time high, briefly going above $90,000 before falling to a low of $82,709. However, with overall market sentiment bullish, BTC recovered from this level and settled at $87,212, registering only a marginal decline. The current session sees BTC marginally down as it remains in the red, trading just above $87,000. With the RSI in the overbought zone, markets expected a correction. Sellers will look to push BTC towards $80,000, a level where it could find support. If BTC slips below this level, a drop to $76,000 looks likely.
Analysts are convinced BTC remains bullish in the long run and expect it to surge past $100,000 by the end of the year and $200,000 by the end of 2025.
Ethereum (ETH) Price Analysis
Ethereum (ETH)โs bull run has stalled around the $3,400 level, with the cryptocurrency registering a substantial decline over the past two sessions. If sellers continue to dominate the market, ETH could slip below $3,000 again. ETH registered a dramatic increase on Wednesday and went past the 20 and 50-day SMAs and $2,700 to settle at $2,723. The price remained in the ascendency on Thursday, rising to $2,897, and on Friday, settling at $2,963, just below the 200-day SMA, which acted as a dynamic level of resistance. ETH pushed above the 200-day SMA and $3,000 over the weekend, rising almost 6% and settling at $3,128. ETH encountered volatility on Sunday as buyers and sellers tried to influence the market. Ultimately, buyers seized the upper hand and pushed ETH up almost 2% to $3,185.
Source: TradingView
ETH registered a significant increase in bullish sentiment as it rose almost 6% to reach an intraday high of $3,389 before dropping marginally and settling at $3,373. ETH rose to an intraday high of $3,444, but with sellers active above $3,400, buyers lost momentum, and a correction took hold. As a result, ETH dropped almost 4% and settled at $3,247. The current session sees ETH down nearly 3% as sellers continue to lower the price. ETH had pushed into the overbought zone, as indicated by the RSI, making a decline hardly surprising. If sellers retain control, ETH could drop to $3,000 or $2,850. If buyers regain control, ETH could retest the resistance at $3,400. If it can move past this level, a move to $3,500 could be on the horizon. Despite the recent correction, analysts are bullish on ETH in the long run.
Solana (SOL) Price Analysis
Like ETH, Solana (SOL) has also registered a substantial decline over the past two sessions as sellers look to drive the price below $200. SOL had been on a bull run since the election when it pushed above the 50-day SMA after rising over 12% and settled at $186. Bullish sentiment persisted on Thursday as SOL rallied to $196 after an increase of 5.23%. Buyers attempted to push above $200 on Friday, and SOL reached an intraday high of $205. However, it could not stay above $200 thanks to selling pressure and fell back to settle at $199. With sellers active at $200, SOL remained at $199 on Saturday before registering an increase of just over 5% to overwhelm the selling pressure and surge past $200 to $210.
Source: TradingView
Buyers retained control on Monday as SOL registered an increase of almost 6% to settle at $222. However, SOL faced selling pressure again at this level and fell back on Tuesday, falling to a low of $204 before recovering and settling at $211. The current session sees sellers retain control, with SOL down 2.51% and trading around $206. If sellers retain control, SOL could slip below $200 and drop to the 200-day SMA which could act as a level of support and facilitate a recovery. On the other hand, if buyers prevent a drop below $200, we could see SOL recover and retest the resistance at $225.
Dogwifhat (WIF) Price Analysis
Dogwifhat (WIF) has seen considerable volatility since last Wednesday, as it pushed above crucial resistance levels. After registering a substantial increase of almost 15% on Wednesday, WIF fell back by 0.91% on Thursday thanks to the 20-day SMA acting as resistance. Volatility increased considerably on Friday as buyers and sellers attempted to exert control. Ultimately, sellers pushed WIF down almost 3% to $2.38. However, market sentiment picked up on Saturday as WIF registered an increase of 7.34% to go above the 20 and 50-day SMAs and settle at $2.48. Bullish sentiment persisted on Sunday as WIF rose over 10% to surge past $2.50 and settle at $2.74 after reaching an intraday high of $2.87.
Source: TradingView
The current week began with bulls intensifying their influence on WIF as the popular meme coin surged over 14%, moving past $3 and settling at $3.12. Volatility increased considerably on Tuesday as WIF dropped to an intraday low of $2.81 before recovering and rising almost 4% to settle at $3.25. However, the current session sees WIF back in the red, with the price down nearly 9% as sellers pushed it below $3 to its current level of $2.97.
Toncoin (TON) Price Analysis
Toncoin (TON) has seen a significant increase in bearish sentiment and volatility over the past two sessions, with its recent price jump stalling at $5.50. DOT faced considerable volatility last weekend as it struggled to push above the 20-day SMA, even as the rest of the market surged following the US elections. Bulls finally took complete control on Saturday as TON surged almost 7% to go above the 20 and 50-day SMAs and settle at $5.25. Volatility returned to the market on Sunday as TON dropped to an intraday low of $5, reaching an intraday high of $5.57 before settling at $5.27 after a marginal increase.
Source: TradingView
The current week began with bullish sentiment returning as TON rose over 4% to move to $5.49. However, volatility returned on Tuesday as TON attempted to overcome the resistance at $5.50. Buyers pushed TON to an intraday high of $5.72 but lost momentum, allowing sellers to take control. As a result, TON fell to an intraday low of $5.09 before recovering to settle at $5.48. The current session sees sellers consolidate their control, with TON down almost 4% and trading at $5.28. Sellers will look to drive TON below the 50-day SMA towards $5.
Injective (INJ) Price Analysis
Injective (INJ) surged past key resistance levels and the 20 and 50-day SMAs on Wednesday as it rallied over 22% to $21.22. After facing some volatility on Thursday, INJ resumed its upward trajectory, rising almost 2% and settling at $21.62. Friday saw INJ go above the 200-day SMA with an increase of nearly 4% to settle at $22.43. Sellers attempted to drive INJ below the 200-day SMA on Saturday but were unsuccessful as buyers took control and pushed the price up over 6% to $23.80. Bullish sentiment intensified on Sunday as INJ surged over 8% to move past $25 and settle at $25.74.
Source: TradingView
Despite the selling pressure, INJ continued to push higher on Monday, rising by 4.43% to settle at $26.88. However, INJ fell back in the red on Tuesday as sellers took control, driving the price down almost 9% to $24.50. INJ fell to an intraday low of $22.36 during the current session as sellers retained control. However, it has recovered from this level and is currently trading at $23.69, down 3.28%.
Fantom (FTM) Price Analysis
Fantom (FTM) has seen a substantial drop in recent sessions as sellers look to drive the price below the 20 and 50-day SMAs. FTM had surged past the 20 and 50-day SMAs on Wednesday after rallying over 18% and settling at $0.689. Bulls remained in control on Thursday as FTM rose to $0.722 after an increase of almost 5%. Despite the bullish sentiment, FTM registered a marginal drop on Friday before recovering to register a rise of 5.25% and move to $0.756. FTM experienced considerable volatility on Sunday, dropping to an intraday low of $0.732 and reaching an intraday high of $0.825 before settling at $0.786 after registering an increase of almost 4%.
Source: TradingView
Buyers retained control on Monday as FTM surged over 6% to go above $0.80 and settle at $0.836. However, it fell back in the red, dropping to an intraday low of $0.72 before settling at $0.764, registering a drop of almost 9%. The current session sees FTM down 8.77% as sellers look to drive the price below the 20 and 50-day SMAs.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
