bitcoin plummeted below $82,000 on November 21, 2024, extending a week-long downturn as a broader tech sell-off infiltrated cryptocurrency markets. The leading cryptocurrency experienced a sharp decline, briefly touching $81,900 before stabilizing, marking its lowest level in over a month.
The crypto market’s vulnerability follows a recent period of robust gains, fueled by the approval of spot Bitcoin exchange-traded funds (ETFs) in the United States. Though, mounting pressure on tech stocks, driven by rising bond yields and concerns about economic growth, has triggered a risk-off sentiment, impacting even digital assets perceived as uncorrelated. approximately $650 million in crypto futures where liquidated in the last 24 hours, according to Coinglass data, signaling widespread investor panic.
Analysts attribute the current correction to several factors, including profit-taking after Bitcoin’s surge to a record high near $73,750 earlier in November, increased regulatory scrutiny, and macroeconomic headwinds. “The market was getting overheated, and a correction was inevitable,” stated Edward Moya, senior market analyst at Oanda, in a research note. ”Bitcoin is still vulnerable to further downside as long as the dollar remains strong.”
The downturn isn’t limited to Bitcoin. ethereum, the second-largest cryptocurrency, also experienced significant losses, falling over 6% to around $2,000.Other altcoins followed suit, with Solana, cardano, and Dogecoin all registering considerable declines. The total market capitalization of the cryptocurrency market has contracted by over 7% in the past 24 hours,erasing billions in value.
experts caution that further volatility is likely in the short term. ”We could see Bitcoin test support levels around $75,000 if selling pressure continues,” warned Marcus Sotiriou, a market analyst at Bitfinex. “However,the long-term fundamentals of Bitcoin remain strong,and this correction could present a buying opportunity for long-term investors.” The crypto market’s reaction to upcoming economic data releases and Federal Reserve policy decisions will be crucial in determining its trajectory in the coming weeks.
