Bitcoin has fallen below 93,714 dollars!

Bitcoin fell below $93,714 on Sunday, erasing its gains after a strong start to 2023. The impact of the former President Donald Trump administration's crypto-friendly attitude has diminished, and the recent stagnation in tech stocks has lowered overall risk appetite.

Bitcoin began to decline four days after reaching an all-time high of $126,251 recorded on October 6, due to Trump’s unexpected tariff announcements. Matthew Hougan, Chief Investment Officer of Bitwise Asset Management, stated, "The overall market is risk-averse. Crypto has acted as a canary in the coal mine indicating this situation; it was the first asset to decline."

Over the past month, the significant withdrawal of large buyers from the market has weakened flow-based support in the cryptocurrency market. Analyst Jake Kennis pointed out that "the wave of selling, profit-taking, institutional exits, macro uncertainties, and the unwinding of leveraged long positions are all coming together."

Institutional investors have been a cornerstone of Bitcoin's legitimacy throughout the year. This year, ETFs have attracted over $25 billion in investment, raising total assets to nearly $169 billion. However, the market is moving toward a new breaking point, which could lead to more uncertainty and declines.

Bitcoin has shaken investors several times throughout the year. After falling to $74,400 in April, it reached new highs but has again experienced a series of losses with the recent decline. Currently, Bitcoin accounts for about 60% of a total market cap of $3.2 trillion.

Small and low-liquidity tokens are more affected by these market fluctuations. This year, the MarketVector index, which tracks the lower half of the market of 100 digital assets, has seen a loss of approximately 60%. Chris Newhouse emphasized that "cryptocurrency markets are always in a state of volatility, and this cycle is not a new phenomenon," noting the general skepticism and the absence of a natural bull catalyst in investments.