Yesterday was a tough day for the market after a big drop in the prices of major currencies. Major currencies like Bitcoin and Ethereum were the most eye-catching, along with other currencies like Solana, Cardano and Polkadot, which were not spared from the declines.
Key Market Indicators Bitcoin and Ethereum
Bitcoin
Bitcoin price dropped to around $97,000, after losing around 5% of its value. The main reason was the heavy selling pressure and profit taking, along with the rise in US bond yields, which made investors leave high-risk assets such as cryptocurrencies.
Ethereum
Ethereum, the second largest cryptocurrency, fell by about 7% to $3,405. The reason was the general state of anxiety in the market and profit-taking after the recent upward wave.
Important currencies affected
Solana
Solana lost about 7% of its value, and its price reached $202. Investors are now concerned about the state of alternative networks in light of this huge decline.
Cardano Cardano
Cardano was one of the coins that lost the most, it fell by about 8%, and its price became about $1. This decline was a result of the weak demand for its network recently.
Polkadot
Polkadot also lost about 8%, and its price reached $7. The main reason was the weak cash flows for new projects related to the market.
Main reasons behind the decline
As bond yields rise, investors decide to move away from risky assets such as cryptocurrencies, which has increased selling.
Profit taking: The last period witnessed a strong rise in the market, which encouraged many people to sell to achieve their profits, which increased the pressure on the market.
Any economic or regulatory changes affect the market quickly, and with the news of global market fluctuations, this has increased the anxiety.
Top Analyst Comments
Mike Novogratz said, "This is a very natural correction in a market full of risks like cryptocurrencies."
Cathie Wood sees these dips as a good opportunity to invest in large currencies like Bitcoin and Ethereum.
Raul Pal said: "The market is going through a healthy correction phase after the recent increases."
Despite the declines that have occurred, large currencies such as Bitcoin and Ethereum have proven before that they can recover quickly. However, we must expect the market to remain somewhat volatile, especially with global economic factors.
The decline that occurred on January 7 was a "healthy correction" in the market after a strong upward wave in the past period. The most important thing for any investor now is to focus on thoughtful decisions and take advantage of the opportunities that the market offers in times of decline. This is, of course, just an analysis and opinion, not financial advice.