Representations of the cryptocurrency Bitcoin are shown in this illustration taken on November 25, 2024.
Dado Rovik | Reuters
Bitcoin's price fell further below the psychologically important $100,000 level, as investors booked profits on the token's gains following the US election.
The world's largest cryptocurrency by market cap was trading 5.9% lower at $92,313.34 as of 7:12 a.m. ET, according to CoinGecko data.
Other symbols were also red. Ethereum, the second-largest coin, fell 4.4% to $3,330.29, while the Solana token fell 9.3% to trade at $228.31.
The entire cryptocurrency market capitalization – calculated by multiplying the total coins in circulation by the price – fell by $182 billion to $3.35 trillion.
“Bitcoin has been on a tear since Election Day… with quite a few pullbacks, but the $100,000 mark remains a massive psychological barrier,” Quantum Economics founder Matty Greenspan told CNBC via email.
“The community has been eyeing this important psychological level for years, and while a breakout now would be a major bullish signal, a short pullback may be needed to gather momentum before the next attempt.”
Brett Reeves, of cryptocurrency infrastructure company BitGo, told CNBC that the main reason behind the selling pressure this week was traders taking profits following the token's post-election rally.
“Historically, when all-time highs are reached, there is usually a period of consolidation before further upward moves,” Reeves told CNBC via email.
“We know that new institutional money is coming into the space and that retail activity is on the rise, whether via ETFs or exchanges. With positive macro and regulatory news ahead, we could see a rapid rebound in price activity.”
Despite Tuesday's decline, Bitcoin has risen more than 30% since the US presidential election on November 5, which resulted in the election of former White House leader Donald Trump.
The Republican politician has not yet been inaugurated. However, optimism over Trump's pro-crypto policy platform in the run-up to the vote has reignited the buzz around cryptocurrencies.
Adding to the optimism in cryptocurrency markets is the news that US Securities and Exchange Commission Chairman Gary Gensler, under whose leadership the agency has taken legal action against several major cryptocurrency companies, will resign on January 20 – the day of Trump's inauguration. Trump had promised to replace Gensler at the agency's leadership.
