The cryptocurrency market is in retreat and has lost $180 billion U.S. of value in the past 24 hours as the price of Bitcoin (BTC) falls back towards $90,000 U.S.
Bitcoin is currently trading at $92,500 U.S., having pulled back sharply after nearly crossing the $100,000 U.S. threshold in recent days.
Other cryptocurrencies are also falling, with Ethereum (ETH) down 5% in the past 24 hours and Dogecoin (DOGE) down 8%.
Analysts say the current selloff is due to investors and traders booking profits from crypto’s post-U.S. election rally as we approach the end of November and Thanksgiving in America.
The entire cryptocurrency market capitalization, which is calculated by multiplying the total number of coins in circulation by their current price, has dropped $182 billion U.S. to $3.35 trillion U.S. in the last day.
Analysts say they now expect a period of consolidation in crypto before another move higher in coming months.
Despite the current pullback, Bitcoin’s price is still up more than 30% since the U.S. presidential election was held on Nov. 5.
Much of the recent rally in crypto is due to optimism around a second Donald Trump presidency and what are expected to be pro-crypto policies.
Adding to the optimism is the fact that U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler, who took legal action against crypto, will resign when Trump takes office Jan. 20.
Bitcoin’s price has now increased 110% this year.
