- The Internet Computer (ICP) price fell 6% over the past 24 hours, slipping below $3.50.
- Earlier the altcoin had surged from a $2.80 low to above $9.62.
- Broader market weakness could push ICP lower, although a Bitcoin rally would support altcoin recovery.
ICP losses unfolded alongside a 29% decline in trading volume, suggesting that reduced selling pressure might eventually create an opportunity for buyers to re-enter the market.
Still, a prior short-lived rally driven by AI integration headlines—such as the Caffeine platform—quickly reversed, leaving room for bears to regain control.
Internet Computer price falls to $3.50
The ICP project, developed by the DFINITY Foundation, is one of the leading blockchain initiatives tied to artificial intelligence use cases.
DFINITY aims to transform the internet by enabling fully on-chain applications—from decentralized finance to AI-powered services—without reliance on traditional cloud providers.
In early November, the DFINITY Foundation released an update to its AI platform, Caffeine DeAI.
The announcement sparked a sharp ICP price move, and bullish momentum pushed the token to a high of $9.62 on November 8, 2025.
The surge coincided with market enthusiasm for the update, which positioned Internet Computer as a potential AI-driven infrastructure and cloud alternative.
Beyond simplifying app creation and deployment, Caffeine includes an App Market and monetization features.
DFINITY said Caffeine could increase network usage and move ICP toward a deflationary model, among other benefits.
However, the token has since retreated from that November peak and fell to $3.50 on December 5, 2025. That represents a roughly 64% decline over the month and reflects broader market selling pressure.
What could drive short-term losses for ICP?
Market analysts point to a combination of factors contributing to downward pressure on crypto assets.
Beyond macroeconomic headwinds, recent FUD surrounding stablecoins and major holders has reduced risk appetite for Bitcoin (BTC) and speculative altcoins.
Those same dynamics affected ICP’s drop to $3.50, and intraday tests of lower support levels have reinforced a fragile outlook.
The situation is compounded by the tendency for altcoins to follow Bitcoin’s price action during corrections.
For example, when Bitcoin briefly dipped near $80,000, Internet Computer slid sharply from above $5 to below $4.20.
ICP is currently trading around $3.51 as Bitcoin tests support near $90,500. If bullish momentum continues to wane, sellers could target historical lows near $1.98, reached in October 2025.
Conversely, altcoins—including ICP—could benefit from network upgrades and growing adoption trends.
Renewed interest in AI-focused tokens and demand for tokenized Bitcoin exposure may help buyers regain control. Ultimately, a shift in sentiment driven by improving macro conditions will be key for any sustained ICP recovery.