The crypto market correction led by Bitcoin continued for the third day, with the asset losing another 3.5% in the past 24 hours. After facing multiple rejections at $100,000, Bitcoin price fell another 4% to reach an intraday low of $92,785. This marked the biggest single-day drop for BTC since Donald Trump’s victory in the US elections. So, what’s behind this decline? According to experts, monthly Bitcoin options expiration, fears of Trump tariffs, partial profit booking, and ETF outflows are some of the factors behind today’s decline.
Bitcoin price drops below $93,000
Bitcoin price fell 4%, dipping below $93,000 before settling above the key $94,000 support level. Despite the recovery, sentiment toward $100,000 has waned. Currently, BTC price is trading down nearly 4% at $94,512, with daily trading volume up 60% to $84.84 billion. According to a Reuters report on November 26, US President-elect Donald Trump has decided to impose additional tariffs on imports from China, Mexico and Canada. With the decline in US stock futures, Bitcoin and the broader crypto index have also come under strong selling pressure.
Data shows that major tokens have followed suit, with Solana’s SOL, BNB, Cardano’s ADA and dogecoin (DOGE) falling by as much as 7% in the last 24 hours. As a result, Bitcoin’s $100,000 target has been missed. However, analysts see the correction of around 10% from the peak as quite natural.
Trump’s statements affect the market
Trump’s statements dampened market optimism on Monday following the appointment of Scott Bessent as US Treasury Secretary last weekend. Bitcoin and altcoins also corrected in early trading hours on Tuesday. But IG Australia Pty Market analyst Tony Sycamore said the recent pullback in Bitcoin was “not a bearish reversal or a bad thing, but a much-needed pullback to offset overbought values.” He also said:
It’s also a reminder that markets, even crypto markets, don’t move in a straight line forever.
Monthly options expiration
A total of $9.4 billion in Bitcoin options contracts are set to expire on Friday, which could trigger strong Bitcoin price volatility down the road. The put/call ratio is currently at 0.83, with the maximum pain point at $78,000, according to Deribit derivatives data. In addition, Bitcoin options daily trading volume rose 124% to $4.47 billion, while open interest rose 2% to $42.6 billion. The majority of open interest is focused on $82,000 calls and $70,000 puts. According to the “maximum pain” theory, the price could head towards the $70,000-$82,000 range.
All eyes on US data for Bitcoin price
The core PCE data to be released on Wednesday could shape the most important event of the week by triggering major movements in the USD and Gold. Therefore, it will have a significant impact on US stocks, Bitcoin and crypto simultaneously. The core PCE index, a critical indicator of inflation, is expected to show an increase that could affect the Federal Reserve’s approach to interest rates. Chris Weston, an analyst at Pepperstone, said that an increase in the core PCE index could dampen hopes for a rate cut in December. Such an increase could indicate continued inflationary pressures and encourage the Fed to maintain current interest rate levels to maintain economic stability.
As the Bitcoin price fell below the key support levels of $94,000, popular crypto analyst CrediBULL Crypto advised caution in creating further long positions in the asset. He said that the recent drop below $94,000 opens the door to $80,000, but it won’t happen right away. Another popular Bitcoin analyst, Joe Consorti, noted that since September 2023, the Bitcoin price has been closely following global M2 money supply trends with a lag of about 70 days.
He warned that if this correlation continues, Bitcoin could face a significant correction of 20-25% in the near term. On the other hand, major players continue to accumulate more BTC. On Monday, MicroStrategy bought 55,000 Bitcoin and Bernstein analysts raised their MSTR stock target to over $600. Similarly, Semler Scientific announced a new BTC purchase yesterday.
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