Why Bitcoin Fell—Understanding the Recent 3.6% Decline

gas_fee_therapy · 2026-01-05T13:30:03+00:00

Bitcoin dropped below $87,000 on December 23, reflecting market volatility and triggering sell-offs. By January 5, it partially recovered to around $92.94K, indicating potential buyer interest despite ongoing uncertainty in the crypto market.

gas_fee_therapy

2026-01-05 13:30:03

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Bitcoin experienced a significant pullback on December 23, sliding below the $87,000 mark as the 24-hour sell-off accelerated to 3.6%. This downturn exemplifies the broader question many investors are asking: why is crypto dropping?

The sharp retreat came amid market volatility, with Bitcoin failing to hold key support levels. The 3.6% decline over 24 hours underscores how quickly sentiment can shift in crypto markets, triggering cascading liquidations and renewed selling pressure.

Current Market Recovery

As of January 5, Bitcoin has staged a partial recovery, trading near $92.94K with a 24-hour gain of 1.98%. This bounce-back suggests that the earlier $87,000 dip may have attracted buyers at lower levels, though broader market uncertainty about why crypto is dropping remains a concern for traders navigating choppy conditions.

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