The price of Internet Computer (ICP) has dropped by 6% in the last 24 hours, falling below $3.50. Recently, the altcoin surged from lows of $2.80 to over $9.62, but overall market weakness could lead to further declines, even as a rise in Bitcoin supports altcoin prices.
ICP Price Drops to $3.50
The Internet Computer token (ICP), launched by the DFINITY Foundation, is a significant player in the artificial intelligence sector.
DFINITY aims to transform the Internet by enabling fully on-chain applications that range from decentralized finance to AI-driven services, without reliance on traditional cloud providers.
In early November, the DFINITY Foundation announced an update for its AI platform, Caffeine DeAI. This announcement triggered a significant price increase, with ICP reaching peaks of $9.62 on November 8, 2025.
This increase coincided with market enthusiasm for an update that positioned Internet Computer as a key AI cloud player. In addition to allowing users to easily create and deploy applications, Caffeine offers an App Market and monetization options.
DFINITY stated that Caffeine will enhance network usage and transition ICP to a deflationary asset among other features.
However, since this November peak, the token’s price has decreased to $3.50 as of December 5, 2025, representing a 64% decline over the past month amid broader market pressures.
Short-Term Catalysts for ICP Losses
Market analysts attribute the significant selling pressure in crypto to a combination of factors. Alongside macroeconomic headwinds, fear, uncertainty, and doubt (FUD) surrounding Tether and MicroStrategy have dampened Bitcoin’s (BTC) risk appetite and affected speculative altcoin assets.
These factors have also impacted ICP’s decline to $3.50, with intraday revisits to lower levels reinforcing a fragile market sentiment. Additionally, there is a prevailing concern about token sell-offs should BTC’s price drop further.
Recently, when Bitcoin dipped near $80,000, the Internet Computer token fell from over $5 to below $4.20. ICP is currently trading around $3.51 while Bitcoin hovers near support at $90,500. If the buying momentum wanes, sellers might target the historical lows of $1.98 recorded in October 2025.
Conversely, the altcoin could benefit from network updates and adoption trends. This could occur amidst a resurgence in AI tokens and demand for tokenized Bitcoin, potentially assisting buyers. A shift in sentiment as the macroeconomic environment improves will be crucial for bullish traders.
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