The recent drop in prices of Bitcoin and other altcoins has raised concerns among investors. Many are questioning if the bull market for cryptocurrencies is over.
Bitcoin and Altcoin Drop
Bitcoin fell from a Monday high of $123,200 to $116,600, while the total market capitalization of all cryptocurrencies fell by over 3.7% to $3.65 trillion. The worst-performing tokens included Pump (PUMP), Virtuals Protocol (VIRTUAL), SPX6900 (SPX), and Fartcoin (FARTCOIN).
Reasons for the Drop
The decline of Bitcoin and altcoins is attributed to profit-taking by investors. It's common for cryptocurrencies and stocks to slightly pull back after a parabolic rise. Additionally, market participants are awaiting the outcome of 'Crypto Week,' where Republicans will consider three bills, including stablecoin regulations and the division of regulatory roles between the SEC and CFTC.
Future of the Crypto Market
According to technical analysis, Bitcoin may continue to drop to the key support level at $110,000, after which it could resume its upward trend. This scenario suggests that the decline does not indicate the end of the bull market but is rather a temporary pullback.
Despite the recent drop, the future of the cryptocurrency market could remain positive if Bitcoin returns to the support level and then continues its upward trend.
