Bitcoin falls to $92,000 as long-term holders continue to profit

Cryptocurrency prices had a volatile Monday due to weak US macroeconomic indicators and rampant profit-taking.

Bitcoin (BTC) has fallen 1.8% over the past 24 hours to $91,800, its lowest price since Dec. 5, when it topped $100,000 for the first time. The largest cryptocurrency has fallen more than 14% from its Dec. 17 record of $108,278.

Ether (ETH) suffered fewer losses, falling 0.7% to $3,320, but is now 17% below its December high and still below its 2021 record of $4,820. Solana (SOL) has also proven to be slightly stronger than Bitcoin. The SOL/BTC ratio rose by 0.35% today.

CoinDesk 20 (an index of the top 20 cryptocurrencies by market capitalization, excluding stablecoins, memecoins, and exchange coins) is also in the red, down 3.74%. Ripple (XRP) and Stellar (XRM) took the biggest hit, falling 6% and 6.3% respectively, but the most resilient coin other than Ether was Litecoin (LTC), which fell 1.9%.

Stock prices of virtual currency-related companies were also hit. MicroStrategy (MSTR) and Coinbase (COIN) fell 7% and 5.3%, respectively, while major Bitcoin mining companies such as MARA Holdings (MARA) and Riot Platforms (RIOT) fell more than 7%.

Part of the selling pressure is due to investors cashing out after Bitcoin has soared more than 117% this year. Profit taking now stands at a seven-day moving average of more than $1.2 billion, significantly lower than the $4 billion peak on December 11th, but still much higher than normal. Furthermore, a large portion of the profits are being taken away by investors who have held Bitcoin for many years.

Macroeconomics also weighed on the market, with the U.S. Chicago PMI, which measures the performance of manufacturing and non-manufacturing industries in the Chicago area, at its lowest reading since May, suggesting an economic slowdown is underway. are.

Uncertainty surrounding the Federal Reserve's interest rate policy into 2025 is not helping, with the central bank signaling a pause in rate cuts until at least March. President-elect Donald Trump's inauguration ceremony, scheduled for January 20th, may also have an impact. The S&P 500, Nasdaq and Dow Jones fell more than 1%.

“The market outperformed expectations in 2024, but signs of exhaustion point to the need for consolidation,” Amundsen Davis partner Joe Calasale told CoinDesk. “Looking to 2025, I am optimistic but expect the path to deviate from consensus, as markets often do. If the U.S. avoids significant growth, Bitcoin will likely perform well, but conditions may be worse than in 2024. ”