bitcoin plummeted below $82,000 on Novemberโฃ 21, 2024, extending a week-long downturn as a broaderโ tech sell-off infiltrated cryptocurrency markets. The leading cryptocurrency experienced a โsharp decline, briefly touching $81,900 before stabilizing, markingโ its lowest โlevel in over a month.
The crypto market’s vulnerability follows a โฃrecent period of robust gains, fueled by the approval of spot Bitcoin exchange-traded funds (ETFs) in the United โฃStates. Though, mounting pressure on techโ stocks, driven by rising bond yieldsโข and concerns about economic growth, โขhas triggered a risk-off sentiment,โข impacting โeven digital assets perceived as uncorrelated. approximately $650 million in cryptoโข futures where liquidated in the last 24 hours, according to Coinglass data, signaling widespread โinvestor panic.
Analysts attribute the โcurrent correction to several factors, including profit-taking after Bitcoin’s surge to a record โhigh near $73,750 earlier โinโ November, increased โขregulatory โscrutiny, andโ macroeconomic headwinds. “The โฃmarketโ wasโข getting overheated, and a correctionโฃ was inevitable,”โ stated Edward Moya, senior market โanalyst at โOanda, in a research note. โ”Bitcoin is still vulnerable to further downside as long โขas the dollar remains strong.”
The downturn isn’t limited to Bitcoin. ethereum,โฃ the second-largestโค cryptocurrency, also experienced significant losses, falling over 6% to around $2,000.Otherโฃ altcoins followed suit, with Solana, cardano, and Dogecoin all registering considerable declines. The total market capitalization of the cryptocurrency market has contracted by โover 7% in the past 24 hours,erasing billions โin value.
experts caution that further volatility is likely in the short term. โ”We could see Bitcoin testโ support levels around $75,000 if โฃselling pressure โขcontinues,” warned Marcus Sotiriou, a market analyst at Bitfinex. “However,the long-term fundamentals of Bitcoin remain โฃstrong,and โคthisโข correction could presentโข a buyingโค opportunity for long-term investors.” The crypto market’s reactionโ to upcoming economic โdata releases and Federal Reserve policy decisions willโฃ be โcrucial in determining its trajectory in โขthe coming weeks.