**Bitcoin Drops Below $90,000 as Market Reacts to U.S. Inflation Data**

Bitcoin started the week strong, trading above $91,000, but quickly lost momentum after failing to break through the $92,000 resistance level. This triggered a sharp price drop, pushing Bitcoin down to around $88,000. The dip came right after the release of key U.S. inflation data, including the PCE and core PCE numbers. These reports sparked increased selling across the crypto market.

Earlier in the week, Bitcoin had tested the $94,000 resistance zone twice but failed to push through. This caused many traders to take profits, leading to a price pullback and trapping Bitcoin between the $91,000 and $92,000 range. Once the inflation data was published on Friday, selling pressure spiked, and Bitcoin dropped by $6,000 within minutes.

This sudden fall wiped out approximately $500 million from altcoin positions, highlighting how sensitive the crypto market remains to U.S. economic indicators. At present, Bitcoin is still trading below the $90,000 mark, and its total market cap has dropped to about $1.8 trillion. Despite the price drop, Bitcoin’s dominance in the overall crypto market remains above 57%, showing that many investors are reducing exposure to altcoins.

**Altcoin Market Suffers Heavy Losses**

Bitcoin’s sharp decline sent shockwaves through the altcoin space. Ethereum dropped by 3.4%, barely holding above $3,000. XRP is also under pressure and could fall below the critical $2 level if selling continues.

Other major altcoins like Solana (SOL), Cardano (ADA), Chainlink (LINK), Hype (HYPE), Dogecoin (DOGE), and Stellar (XLM) also experienced losses ranging from 3% to 5%. Privacy coin Zcash (ZEC) and an unnamed altcoin labeled “CC” were hit hardest, both suffering double-digit losses due to panic selling.

Interestingly, a few coins like Tron (TRX) and Bitcoin Cash (BCH) managed to record small gains despite overall market weakness.

In just 24 hours, the total cryptocurrency market cap dropped by around $60 billion, falling to roughly $3.13 trillion. This decline underscores how quickly investor sentiment can shift in response to macroeconomic news.

**Regulatory Moves Add More Pressure**

Adding to the market’s volatility, Coinbase announced changes to its staking services based on institutional feedback. Analysts point out that every regulatory move in the U.S. tends to cause sudden price swings in the altcoin sector. With current market conditions already fragile, any news about regulations can easily trigger major reactions.

**What’s Next for Bitcoin and the Market?**

Bitcoin’s failure to break above $94,000 shows that it is facing strong technical resistance. The broader sell-off across altcoins signals a clear drop in investor risk appetite. Moving forward, the direction of the crypto market will likely depend on upcoming U.S. economic data and whether Bitcoin can recover above the key $90,000 support level.

For now, traders and investors remain cautious, closely watching inflation indicators and regulatory developments that could shape short-term price action across both Bitcoin and altcoins.