Crypto Price Today: Bitcoin drops 2.5% amid pullback in altcoins. Ethereum, XRP, Solana fall by up to 4%

Bitcoin was trading with a negative bias on Friday amid selling pressure near the resistance of $1,00,000. AT 1:15 am, it was trading at $95,343.50, higher by 2.51%. Most major altcoins were trading with a negative bias around this time including Ethereum (ETH), Tether, XRP, BNB, Solana, Dogecoin, Cardano, Tron, Shiba Inu, Toncoin and Avalanche. They were lower by up to 4% around this time.

The weakness in crypto assets has been on account of the hawkish Federal Reserve commentary which has hinted at a shallower rate cut in 2025. In its December monetary policy announcements, the Central Bank said that its 2% inflation target was unlikely to be achieved in the coming year.

Crypto currencies have been in the consolidation mode after a cracking rally following President elect Donald Trump’s re-election. IT has corrected by 10% from its all time high of $108,268.45.

Commenting on the action, expert Avinash Shekhar, who is Co-Founder & CEO of Pi42 said that Bitcoin's recent struggle to break past the $100,000 mark, combined with the sharp pullback across altcoins, underscores the ongoing volatility in the crypto market.

While BTC remains resilient, holding above the $92,000 support level, the rejection at the psychological $100K barrier highlights the challenges in sustaining upward momentum, he added. Moreover, significant losses in altcoins like LINK, AVAX, and ADA suggest a broader market correction, further fueling concerns about investor sentiment, this analyst said.

"With market capitalization dipping below $1.9 trillion, the next few days could be crucial in determining whether Bitcoin can regain traction or if we’re headed for a prolonged consolidation phase. As always, caution remains essential, but this market's ability to bounce back has proven time and again to be formidable," Shekhar said.

A CoinSwitch Markets Desk data suggested December gains standing less than 2% with selling pressure remaining prevalent at higher levels. Despite sharp volatility, Bitcoin derivatives remain neutral-to-bullish, signaling steady sentiment, it said.

"Its 64% correlation with the S&P 500 ties its fate to broader economic concerns. Ether ETFs saw $2.5B inflows despite a 10% price dip and resistance at $3,500. Institutions like VanEck predict a $6,000 peak by 2025, underscoring long-term confidence. The Fed now expects only two rate cuts in 2025, easing short-term fears for corporate earnings. Meanwhile, Turkey tightens crypto oversight, requiring ID verification for transactions above $425. Crypto markets balance optimism and caution, with macro risks and key resistance levels in focus," CoinSwitch Markets Desk said.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)