Bitcoin Drops 1.5% Below $106,000 as Crypto Markets Cool

Bitcoin experienced a notable decline on Thursday afternoon, slipping below $106,000 for the first time in nine days. This downturn marked a cooling off period for crypto markets, which had been on a multi-week rally from the April lows. The top cryptocurrency reached a session low of $105,750 before recovering slightly to just above $106,000. Over the past 24 hours, Bitcoin saw a 1.5% decrease, yet it remained within 5% of its record high levels.

The broader crypto market also felt the impact, with the CoinDesk 20 index, which tracks the top 20 cryptocurrencies by market capitalization excluding exchange coins, memecoins, and stablecoins, dropping by 0.9% in the last 24 hours. Solana and Avalanche were among the underperformers, with losses of 1.8% and 2%, respectively. In contrast, Ethereum's ether and XRP bucked the trend, posting gains of 1% to 2%.

Crypto-related stocks had a relatively subdued session. Coinbase saw a 2.7% decline, while MicroStrategy rose by 0.8%. Bitcoin mining firms such as Bitfarms, Bit Digital, CleanSpark, and Greenidge Generation Holding incurred losses of around 4%.

Traditional markets also showed signs of volatility. U.S. equities gave back most of their gains from the previous day's court ruling that blocked the Trump administration's global tariffs. However, a U.S. appeals court reinstated the tariffs while the government appealed the earlier ruling, adding to investor uncertainty. Market strategist Joel Kruger anticipated a volatile period ahead, with the ongoing appeal and the self-imposed July 9 deadline for trade deals approaching. Despite this, Kruger maintained a bullish outlook for digital assets, noting that Bitcoin has shown robust performance, consolidating just below its recent peak while holding above $100,000 for 20 consecutive days.

Ethereum's ether also showed strength, with analysts noting signs of a potential breakout from its multi-year downtrend against Bitcoin. This optimism was fueled by the corporate crypto treasury bonanza, which has extended to the second-largest digital asset with SharpLink Gaming's $425 million fundraising plan. Arthur Aziz, founder and investor of B2 Ventures, shared a technical analysis indicating that ETH is forming a bullish ascending triangle pattern, which historically precedes rallies to higher prices. Aziz cautioned, however, that excessive leverage in futures markets could trigger a sharp breakdown below the $2,550-2,450 support zone, leading to cascading selling.