Bitcoin-related stocks saw a decline in Tuesday's pre-market trading as Bitcoin's price slipped from its recent highs. The cryptocurrency's rally appears to be losing steam after nearing the significant $100,000 milestone.
What Happened: Bitcoin, often dubbed "King Crypto," was trading at $93,590.38 at 5:00 AM Eastern Time. A prominent trader has warned that if Bitcoin fails to break through the $100,000 resistance level, it could experience a significant correction, potentially dropping to $85,600 in a worst-case scenario.
As Bitcoin's momentum seems to be waning, stocks tied to the cryptocurrency also face declines. As per Benzinga Pro, MARA Holdings Inc (NASDAQ:MARA) dropped by 3.63%, MicroStrategy Inc (NASDAQ:MSTR) fell by 3.33%, and Coinbase Global Inc (NASDAQ:COIN) decreased by 3.40% in pre-market trading on Tuesday.
Why It Matters: The recent dip in Bitcoin's price comes amid a broader cooling of bullish sentiment in the cryptocurrency market. According to Santiment data, the enthusiasm that fueled a prolonged rally since September is waning, especially for major cryptocurrencies like Bitcoin and Ethereum.
Adding to the concerns, a crypto analyst known for accurately predicting the 2022 market crash has warned that Bitcoin may be approaching a local top. The analyst, known as Capo, has highlighted indicators such as overextended bullish sentiment and diminishing momentum as signs that a correction could be imminent.
- Bitcoin, Dogecoin Dip, Ethereum Stays Green: Trader Predicts 'First Major BTC Correction' Only After One
Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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