The cryptocurrency market has witnessed a rapid and sharp decline in the past few hours. After the price of Bitcoin reached $108,000 (a record level), it fell below $100,000 and is trading at $96,000 at the time of publishing this article.
Alternative digital currencies, on the other hand, are very sensitive to the decline of Bitcoin. After Bitcoin declined, they also declined, some of them by double-digit percentages.
Is the bull market over?
The crypto community had a real honeymoon after Donald Trump won the presidency of the United States of America, as he had many promises regarding the market, its regulation, support, and the possibility of making Bitcoin a reserve asset in the US Treasury.
But after the speech of the Chairman of the Federal Reserve in the past hours and the denial of the possibility of the US Reserve storing Bitcoin, the price of Bitcoin reacted negatively, and the decision not to cut interest rates significantly in the future also affected the price of Bitcoin.
Another negative factor that has affected the current movement of the crypto market is the large outflows from Bitcoin funds as it indicates a clear change in investor behavior.
Currently, the focus is on whether Bitcoin can maintain the $94,000 level or whether it will visit the $85,000 level soon before bouncing back.
On the other hand, many analysts see the current correction as a natural part of the bull market cycle, with both Captain “Fibrek” and “Crypto_Rover” seeing the support level at $94,000 as a pivot point for a healthy reset, which could set the market up for a continued rise.
