- The Internet Computer (ICP) token price fell 6% over the past 24 hours to below $3.50.
- The altcoin had recently rallied from a low of $2.80 to more than $9.62.
- Ongoing market weakness could push ICP lower, although a Bitcoin rebound would likely support altcoins.
Losses for Internet Computer come amid a 29% decline in trading volume, suggesting that reduced selling pressure could eventually benefit buyers.
Even so, brief rallies sparked by AI integrations—such as the Caffeine platform—have quickly reversed, giving bears the opportunity to reassert control.
Internet Computer price falls to $3.50
The ICP project, launched by the DFINITY Foundation, is one of the leading blockchain initiatives tied to artificial intelligence development.
DFINITY aims to transform the internet by enabling fully on-chain applications—from decentralized finance to AI-driven services—without relying on traditional cloud providers.
In early November, the DFINITY Foundation released an update for its AI platform, Caffeine DeAI.
Following the announcement, ICP’s price surged, with bulls driving the token to a peak of $9.62 on November 8, 2025.
That rally coincided with market enthusiasm around the update, which strengthened the narrative of Internet Computer as a major AI cloud engine.
Besides simplifying app development and deployment, Caffeine includes an App Market and monetization features.
DFINITY has said Caffeine will help increase network usage and could contribute to turning ICP into a deflationary asset, among other outcomes.
However, the token’s value plunged from its November peak, reaching $3.50 on December 5, 2025. That represents a roughly 64% decline over the month and reflects broader market pressure.
What could drive further short-term ICP losses?
Market analysts attribute the crypto sell-off to a combination of factors.
Beyond unfavorable macroeconomic conditions, FUD surrounding Tether and MicroStrategy (MSTR) has reduced risk appetite for Bitcoin (BTC) and speculative altcoins.
Those dynamics also affect ICP; repeated intraday visits to lower price levels around $3.50 have reinforced a fragile outlook.
Additionally, sentiment about potential token dumps intensifies if Bitcoin weakens sharply.
For example, when Bitcoin fell near $80,000 recently, Internet Computer plunged from above $5 to below $4.20.
ICP currently trades around $3.51 while Bitcoin hovers near support around $90,500. If bullish momentum fades further, sellers could target the historical low of $1.98 recorded in October 2025.
On the upside, ICP could benefit from network upgrades and improving adoption trends.
In a market where AI-related tokens are regaining interest and demand for tokenized Bitcoin is rising, those catalysts could attract buyers. Ultimately, a shift in sentiment—tied to improvements in the macroeconomic environment—will be critical for bulls to regain control.