Bitcoin Price Suddenly Drops by $2,000: Fundamental Reasons

The price of Bitcoin fell below $87,000 in post-Christmas trading, causing a decline in the value of crypto assets. Meanwhile, traditional metals like gold and silver reached record levels. With the reopening of US markets after the holiday, the weak performance in the crypto market created uncertainty among investors.

During the night, the price of Bitcoin approached $89,000, but saw a sharp decline, particularly with the start of the US session, falling below $87,000. The widespread sell-offs in the crypto market indicated a notable decrease in investors' risk appetite.

Alongside Bitcoin, the price of Ethereum also experienced a similar decline, while Dogecoin faced a drop exceeding 4%. XRP lost approximately 3% of its value. This situation confirmed the overall weakness in the crypto sector, and crypto-related stocks also faced similar sales.

Shares of US-based crypto exchange Coinbase saw a decline of around 2%, while the shares of other companies like Gemini and Galaxy Digital fell between 3% and 6%. Companies engaged in Bitcoin mining faced even sharper sell-offs, with some stocks experiencing daily losses exceeding 7%.

Weak year-end liquidity in the markets and the approach of large options expirations are cited as primary reasons for the short-term pressure on Bitcoin prices. Additionally, as more investors chase safe havens like metals, this could lead the crypto market to exhibit a cautious trend in the last days of the year.

In conclusion, it seems important for investors to monitor critical price levels, directing their attention toward market fluctuations and diversification strategies.