The cryptocurrency market witnessed a brief pause on Tuesday, following a remarkable rally that began after the U.S. election.
Bitcoin, which had surged over 10% to reach $89,623 on Monday, dropped to $85,300.
Despite this correction, investors remain optimistic, anticipating a resurgence in demand.
According to Coinglass data, the market volatility resulted in approximately $968 million in liquidations on crypto-tracked futures, affecting both long and short positions.
Over 262,000 traders were impacted. However, bullish sentiment remains strong, with many investors predicting Bitcoin will continue to set new records and reach $100,000 by the end of the year.
The market correction is expected to be superficial, with solid supports in the $86,500/$84,000 zone.
Bitcoin has gained over 26% since election day, marking a new record since March. Altcoins experienced mixed reactions, with Ether down 3% and Shiba Inu dropping 4% after rising 57% the previous week.
Longtime Bitcoin owners have held onto their assets, unwilling to sell below $100,000, according to Bitwise Chief Investment Officer Matt Hougan. This, combined with asset managers accumulating record volumes of Bitcoin ETFs, indicates a strong market.
The Republican sweep in the U.S. election has boosted cryptocurrency prospects, with President-elect Donald Trump pledging to improve regulatory clarity. This has led to predictions of a $10 trillion total crypto market valuation by 2026.
The current market valuation stands at $3 trillion, surpassing the market capitalizations of Tesla and Facebook’s parent company Meta. Bitcoin’s market valuation has also exceeded silver’s, reaching $1.73 trillion.
While traders anticipate short-term pullbacks, the overall sentiment remains positive, projecting a slower rise to $100,000.
