TL;DR
Bitcoin fell 1.4% to $122,494 after the US dollar became stronger. Other big cryptocurrencies like Ethereum, XRP, and Solana also dropped. Binance Coin was the only major token to rise. Experts say investors are booking profits, and a strong dollar is putting pressure on the crypto market.
Bitcoin falls as US dollar gains strength
Bitcoin’s price dropped sharply on Wednesday as the US dollar rose in global markets. In the last 24 hours, Bitcoin lost 1.4% and is now trading at $122,494. The US Dollar Index went up by 0.3%, reaching its highest level since August. A strong dollar usually leads to a fall in risky assets like Bitcoin. This happens because investors shift their money to safer investments.
Other major cryptocurrencies also see losses
The fall in Bitcoin affected the rest of the crypto market. Ethereum dropped 4.3% to below $2,950. XRP also fell 3.6% and is now worth about $0.53. Solana went down 4% to $157. Only Binance Coin moved up. It rose 2.4% and has gained almost 50% in the last one month. Experts say this shows investors are being careful and picking specific coins.
Investors book profits after recent rally
Bitcoin had gone up a lot in the past few weeks. Last week, it touched $125,000, the highest level since 2021. Now, many investors are selling their holdings to take profits. This is common after a big rise. Fewer transactions on the Bitcoin network also show that some investors are waiting on the sidelines. This adds to the pressure on prices.
$120,000 is a key support level
Even with the recent fall, Bitcoin is still up more than 40% this year. Experts say $120,000 is an important level. If Bitcoin stays above it, prices could rise again. But if it falls below, prices may drop more. Investors are now waiting for fresh US inflation data and new signals from the Federal Reserve.
Long-term demand for crypto stays strong
Experts believe the current fall is not the end of the crypto rally. Many investors still see Bitcoin and gold as protection against inflation. Gold is also trading near record levels. Big financial firms are still putting money into crypto. New indexes and more use of blockchain show that crypto is slowly becoming a regular part of the financial system.
FAQs
- Why did Bitcoin fall?
The US dollar became stronger, and many investors sold Bitcoin to take profits. - Which cryptocurrencies also dropped?
Ethereum, XRP, and Solana fell. Binance Coin was the only major token that rose. - Is this the end of the crypto rally?
No. Experts say this is a short-term correction. Long-term interest in crypto is still high.
