Bitcoin’s price sank below $96,000 today. This sharp price drop hit the crypto market hard on January 8, 2025. The total crypto market value fell by 6.12% to $3.36 trillion. U.S. Treasury yields and economic worries pushed prices down even more.

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How the Bitcoin Price Drop Affects Your Investments and the Crypto Market

Market Impact and Trading Volume

The Bitcoin price drop pushed values down to around $95k. This marks a 5.23% fall in one day. Trading went up by 26.81% to $62.56 billion as more people sold their coins. The Fear & Greed Index hit 54. This shows traders feel unsure about Bitcoin investment risks right now.

Altcoin Market Response

The latest cryptocurrency market news shows other coins suffered, too. Ethereum fell 8.61% to $3,352.49. Solana dropped 9.21%, and XRP lost 5.06%. The Bitcoin price drop hurt most coins. Only BGB went up by 2.63% to $6.49 among the top 100 cryptos.

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Factors Behind the Decline

U.S. Treasury yields have gone up over ten years. This hurts digital coins badly. Government debt problems worsened things, as these issues add to crypto market volatility. The cryptocurrency crash led to more trading, with global trade rising 35.28% to $172.39 billion.

Market Outlook and Risk Assessment

The Bitcoin price drop keeps shaping the market mood. Total crypto value now sits at $3.36 trillion. Bitcoin still holds $1.91 trillion of this amount. High crypto market volatility makes traders watch Bitcoin investment risks closely.

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Expert Analysis

“The significant increase in trading volume to $172.39 billion reflects growing market participation despite the volatility,” market reports show. More people trade despite falling prices. This might mean the market could bounce back soon.