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.
- Advertisement -
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.
- Advertisement -
While traders anticipate short-term pullbacks, the overall sentiment remains positive, projecting a slower rise to $100,000.
