Bitcoin has dropped below $95K and reached a daily low of approximately $92,800 before stabilizing around $94,000 in the last 24 hours. When the entire crypto market is hoping for Bitcoin to break through $100K resistance and reach a six-figure value, this sudden drop in prices indicates a temporary setback in the current bullish trend. Many analysts believe that the reason for this drop is selling pressure at $100K and Jim Cramer’s support for Bitcoin.
This drop caused the prices to decline by more than 3% at the time of writing, and the market cap also fell by more than 3.5%. Furthermore, on the 25th, the Bitcoin spot also had a total net outflow of $438 million, which was the first time since last week that BTC experienced an outflow.
Currently, there is a short liquidation pressure of $5.66B at the price of $104,336, which denotes that more traders are hoping that prices will drop after they reach their expected price level. This immense selling pressure at the 100K level could have likely caused the price to fall below the $95K level.
BTC Hits $98K Amid Market Gains and Extreme Greed SentimentAnother possibility could be Cramer’s support for Bitcoin. Jim Cramer, the host of CNBC’s Mad Money and a former hedge fund manager, called Bitcoin a ‘winner’ during the ‘Lightning Round’ of the show. Although Cramer praised Bitcoin, instead of causing the price to raise, his actions caused the price to drop. This could be because of the “Inverse Cramer” effect, a phenomenon in which investors do the opposite of what he suggests.
Despite the decline in BTC prices and the speculation surrounding it, Justin Sun tweeted that the U.S. is becoming the blockchain hub and that Bitcoin owes it to presidential elect Donald Trump. He also invested $30 million in the World Liberty Financial, a Trump project.
