Cryptocurrency Market Crash (January 8, 2025): Bitcoin price drops to $96,000

The cryptocurrency market witnessed a sharp decline today, with the global market capitalization falling by 6.12%, falling to $3.36 trillion. The sharp increase in trading volume by 35.28% to $172.39 billion reflects the growth in market activity despite the volatility. The Fear and Greed Index fell to 54, indicating neutral sentiment as traders navigate uncertainty.

The main factors fueling the collapse

The sharp rise in US Treasury yields over the past decade, coupled with macroeconomic uncertainties such as fiscal deficits and a looming debt ceiling, have unnerved investors. These factors have increased volatility across asset classes, impacting cryptocurrencies.

Will Bitcoin’s price bear the brunt today?

Bitcoin, the market leader, saw its price drop by 5.23% over the past 24 hours, settling at $96,418.88. Despite the decline, its market capitalization remains strong at $1.91 trillion. Bitcoin trading volume rose significantly by 26.81% to $62.56 billion, reflecting increased selling pressure amid macroeconomic headwinds.

Discover more in-depth Bitcoin insights at our website Bitcoin price forecast.

Altcoins return to turmoil?

Ethereum led the altcoin market sharply lower by 8.61% to $3,352.49. Solana and XRP followed, down 9.21% and 5.06%, respectively. Broader market sentiment reflects unease, as traders weigh the potential impact of external factors on cryptocurrency valuations.

For a more detailed analysis of Ethereum, check out our website Ethereum price prediction.

Highest winner

PGB: It rose 2.63% to $6.49.

Biggest losers

• Noise: It fell by 16.69% to $21.32.
• Tia: It decreased by 14.89% to reach $4.66.
• Inna: It decreased by 14.84% to reach $0.9846.

Subscribe with us to get daily updates from the industry!

Frequently asked questions