Bitcoin Crashes Below $97,000, Ethereum Down 9% Amid Market Downturn

Bitcoin has dipped to $97,000, which marks a notable setback for the cryptocurrency market. Alongside Bitcoin, major altcoins are also seeing sharp declines that reflect broader volatility in digital assets.

At the time of writing, Bitcoin fell 6.63 per cent to $96,900.55, continuing the market’s downward trend. This marks its lowest price in around six months, according to coinmarketcap. Ethereum also declined, dropping 9.63 per cent to $3,192. Over the past month, Bitcoin has been down 13.71 per cent, while Ethereum has slipped 22 per cent in the same period. While other major altcoins showed broad weakness, XRP fell 7.16 per cent to $2.30, BNB was down 5.28 per cent at $918.48, Solana decreased 8.22 per cent to $142.76, and Cardano dropped 7.87 per cent to $0.5214.

What’s Behind the Cryptocurrency Decline

Experts point to rising fear and uncertainty in the crypto space as key factors behind today’s declines, with traders reacting to both short-term volatility and broader economic development.

Paras Malhotra, SVP – Trade, Custody and BizOps at CoinDCX, highlighted, “Bitcoin’s drop below the psychological barrier of $100,000, touching around $98,800 today, can largely be attributed to rising fear in the broader crypto market. As sentiment moves toward extreme fear, traders are reacting to intensified sell-offs.”

Edul Patel, CEO of Mudrex, said, “The crypto market continues to consolidate, with Bitcoin trading around $99,000 and Ethereum hovering below $3,200. While the U.S. government has reopened, delays in key economic reports have added short-term uncertainty around the Fed’s December rate decision.

What’s Next for Bitcoin

Even though the market has dipped recently, analysts say the fundamentals are still strong.

Patel stated that long-term sentiment is still stable as whales continue to accumulate, purchasing over 45,000 BTC in the previous week. This consistent demand shows confidence in the market, with $96,000 serving as crucial support and $102,500 as immediate resistance.

On the recent market dip, Paras added that based on recent market trends, this seems to be a short-term correction and not a major reversal. Bitcoin briefly touched $100,000 yesterday but rebounded above $102,000, which shows bulls are still active while today’s dip reflects temporary selling pressure.