On January 13, the price of the leading cryptocurrency on Binance plunged to $89,256.
Amid a burst of buying, the leading cryptocurrency rebounded to $93,000. It is now trading around $92,500.
According to CoinGecko, bitcoin fell 6% over the past 24 hours. Major altcoins outpaced the flagship on the way down: Cardano (ADA) lost 11%, and Ethereum (ETH) slipped below the psychological $3,000 mark.
Crypto market capitalisation shrank 6.3% to $3.24 trillion. Bitcoin’s dominance is nearly 55%.
Liquidations over the past day topped $675 million, with more than $294 million in the past four hours. The totals were almost entirely driven by the closing of long positions.
The Crypto Fear and Greed Index fell to 61 — close to neutral territory for buyers.
Bitcoin’s slide coincided with the US stock market. Bloomberg ETF analyst Eric Balchunas noted as much.
I’ve been saying this the whole time: the biggest risk to bitcoin is stocks (aka “boomer markets” lol) going down. This is the price you pay for being ‘hot sauce’ asset which has it’s benefits but also drawbacks. That said gold also down but way less. Good news is Trump will prob… https://t.co/kwoMhK0sdi
— Eric Balchunas (@EricBalchunas) January 13, 2025
“I have always said that the biggest risk for bitcoin is stocks going down. This is the price you pay for being a ‘hot sauce’ asset, which has certain advantages but also drawbacks. Gold is also falling, but much less,” the expert wrote.
Balchunas also reckons the US president-elect will likely support equities, so the pullback in digital gold should be short-lived.
According to a CryptoQuant contributor known as Percival, selling pressure on bitcoin is easing. This is evidenced by a range of market indicators such as open interest in BTC futures and inflows into spot ETFs.
Is Bitcoin’s Indecision Channel Trying to Find Demand to Continue?
“The odds favor the $90K floor, but beware! There is a gap in the STH MVRV between 1.08 and the average at 1 (STH cost base $88), and this difference can become the “breathing space” for an eventual external… pic.twitter.com/fpt1UzDctD
— CryptoQuant.com (@cryptoquant_com) January 13, 2025
He sees $90,000 as the most likely floor for the correction. Earlier, another CryptoQuant author, Shayan ₿, said that a sustained move below that level would undermine investor confidence in the asset.
Analyst Ali Martinez estimates that bitcoin needs a decisive close above $100,000 to neutralise the risk of a potential drop toward $78,000.
Earlier, QCP Capital specialists highlighted a slate of US macroeconomic data due this week. They believe the releases will be a real test of bitcoin as an inflation hedge.