Crypto Markets Correct as Bitcoin Drops 5% to $101,500

Cryptocurrency markets experienced a pullback on Thursday, with Bitcoin dropping to $101,500 as investors took profits following recent rallies. This decline indicated that the return to all-time highs might not be as imminent as some bulls had hoped.

Major altcoins saw steeper declines compared to Bitcoin. Ethereum fell by 3% over the past 24 hours, while XRP, Solana, and Dogecoin each dropped around 5%. This pullback was seen as a "healthy correction" within a broader uptrend, according to analysts. The strong inflows into Bitcoin and Ethereum ETFs were cited as providing a solid foundation for long-term support.

Valentin Fournier, a lead research analyst, described Thursday's declines as a "modest pullback." He noted that while this appeared to be a healthy correction, altcoins, which had led the rally, were showing more volatility. Fournier believed that Bitcoin's $100,000 level would serve as a critical support zone for an extended accumulation phase.

Ruslan Lienkha, chief of markets at YouHodler, suggested that the upward momentum was moderating as tariff negotiations had concluded, leading short-term traders to lock in profits across the equity markets. This shift in sentiment spilled over into riskier assets, including Bitcoin, resulting in the current pullback, which was seen as a correction within a broader medium-term uptrend.

Looking ahead, Lienkha believed that ongoing global economic uncertainty and persistently high interest rates in the U.S. could act as headwinds for crypto, potentially limiting its upside potential. The correlation between Bitcoin and the S&P 500, measured at 0.86, suggested that continued strength for BTC might depend on developments on Wall Street.