The cryptocurrency market experienced a significant decline in value in the last 24 hours, losing 2.10%. The market value fell to $3.17 trillion, reaching its lowest level in the last five days. As we reported at Kriptokoin.com, while Bitcoin (BTC) and other major cryptocurrencies face intense selling pressure, the market is feeling the impact of global developments. In particular, the decrease in tension in the Middle East and the economic policies of the US are guiding the crypto market.
Sharp Decline in Leading Cryptocurrency Bitcoin and Investor Movements
Bitcoin is down 8% from its peak of $99,830 on Nov. 22 to $91,377. CryptoQuant data shows that BTC’s profit-to-loss (P/L) ratio has reached its peak levels from March 2024, suggesting that long-term investors are turning to profit-taking.
In addition, Biden’s statements easing tensions between Lebanon and Israel have reduced demand for safe haven assets like Bitcoin. In addition, the decline in RSI and Bitcoin’s entry into the overbought territory have made it difficult for it to break the $100,000 level. These technical factors are increasing selling pressure in the market.
Bitcoin Futures and Volatility
The Bitcoin futures market is also seeing high volatility. Derive founder Nick Forster noted that traders are developing strategies to protect against price declines. This is supported by the call-put curve, which is seen as a 30% drop in Bitcoin options expiring on December 27.
Options data predicts that Bitcoin could fall to $81,493 or rise to $115,579 with a 68% chance of falling to $81,493 or rising to $115,579. However, in extreme cases, there is only a 5% chance. Such volatile moves could lead to significant price swings in the coming months.
Future Expectations in the Cryptocurrency Market
This decline in the crypto market has increased investors’ discussions on the possibility of a recovery or further decline. MN Trading founder Michael van de Poppe stated that Bitcoin is likely to follow a sideways trend. However, he added that some altcoins could show strong performance in this process.
In terms of long-term prospects, institutional investors continue to trust Bitcoin. MicroStrategy announced that it purchased 55,500 BTC at an average price of $97,862. This purchase strengthens confidence in Bitcoin’s future potential despite market volatility.
Altcoin Performance: Winners and Losers
Altcoins showed mixed reactions to the overall downtrend in the market, with Sandbox (SAND) down 12.03%, Stellar (XLM) down 10.07%, and Decentraland (MANA) down 8.24%. Other altcoins like Arbitrum (ARB), Maker (MKR), and Ethereum Classic (ETC) are also down over 5%.
In contrast, some altcoins showed a positive performance. Fantom (FTM) rose by 13.86%, Sei (SEI) rose by 13.55% and Injective (INJ) by 13.05%. Algorand (ALGO) attracted investors with a 10.59% increase, while tokens such as Sui (SUI) and Theta Network (THETA) were also among the winners.
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