Bitcoin Declines to $92,000 as Long-Term Investors Keep Cashing Out

As 2024 concludes, macroeconomic challenges and aggressive profit-taking are putting a strain on the cryptocurrency market.

Crypto prices are experiencing turbulence on this Monday, driven by weaker-than-expected U.S. economic data and ongoing profit-taking activity. Bitcoin (BTC) has decreased by 1.8% in the last 24 hours, dropping to $91,800, a price point not seen since Dec. 5, when it crossed the $100,000 mark for the first time. Bitcoin has now fallen over 14% from its Dec. 17 peak of $108,278.

Ether (ETH) has fared somewhat better, falling 0.7% to $3,320. However, it remains 17% below its December highs and has yet to surpass its 2021 all-time high of $4,820. Solana (SOL) has shown relative strength compared to Bitcoin, with the SOL/BTC ratio up 0.35% today.

The CoinDesk 20, an index of the top 20 cryptocurrencies by market capitalization (excluding stablecoins, memecoins, and exchange-based tokens), has also slipped, losing 3.74%. Ripple (XRP) and Stellar (XLM) are the hardest-hit assets, down 6% and 6.3%, respectively, while Litecoin (LTC) has shown greater resilience, with a more modest 1.9% drop.

Shares of crypto-related companies have also experienced losses. MicroStrategy (MSTR) fell 7%, Coinbase (COIN) dropped 5.3%, and prominent Bitcoin mining firms such as MARA Holdings (MARA) and Riot Platforms (RIOT) saw declines exceeding 7%.

The current selling pressure can largely be attributed to profit-taking after Bitcoin’s 117% rally in 2024. The seven-day moving average of profit-taking has surged past $1.2 billion, although this figure is significantly lower than the $4.0 billion peak recorded on Dec. 11. Even so, profit-taking remains considerably higher than typical levels, with long-term holders of Bitcoin accounting for a substantial portion of the realized gains.

Macroeconomic concerns are also contributing to the market’s challenges. The U.S. Chicago PMI, which tracks the performance of the manufacturing and non-manufacturing sectors in the Chicago area, posted its lowest reading since May, signaling potential economic slowdown.

Additionally, market uncertainty surrounding the Federal Reserve’s interest rate decisions for 2025 is further weighing on investor sentiment, as the central bank has indicated it will hold off on rate cuts until at least March. The upcoming inauguration of President-elect Donald Trump on Jan. 20 may also be contributing to volatility. Major stock indices like the S&P 500, Nasdaq, and Dow Jones are all down over 1%.

“While 2024 exceeded expectations, the market is showing signs of exhaustion, suggesting a period of consolidation is on the horizon,” said Joe Carlasare, a partner at Amundsen Davis. “As we move into 2025, I’m optimistic but anticipate a market divergence from consensus, which often happens. Bitcoin adoption is growing, and I expect it to generally align with traditional markets. If the U.S. economy avoids a significant slowdown, Bitcoin should perform well, though the path ahead may be more volatile than in 2024.”