Bitcoin Price Drop
Bitcoin has dropped over 5% in the last 24 hours, resting around $86,316 as of 9:22 a.m. IST on December 1. This decline has been felt across the broader cryptocurrency market.
During a turbulent morning, Bitcoin fell to a low of $85,800 while peaking at $91,593. It managed to hold above $91,000 for several days before this significant fall. In just a few hours, this led to a selloff that erased nearly $140 billion from its market cap.
Traders are reportedly growing cautious, anticipating comments from Federal Reserve Chairman Jerome Powell later today, which might influence the upcoming FOMC meeting’s expectations.
Data from the CME FedWatch tool indicates that the likelihood of the Fed reducing interest rates to between 350 and 375 basis points has climbed to 87.4%, up from 71% a week ago.
On the polling platform Myriad, 73% of participants believe Bitcoin could hit $100,000, while others predict a drop to $69,000.
“Even with the slowdown, Bitcoin ETFs experienced their first weekly net inflows since October, suggesting a possible revival in institutional interest. Enhanced liquidity and increased market depth also lend support to a positive outlook,” noted Akshat Siddhant, lead quantitative analyst at Mudrex. “If sentiment stabilizes, BTC might aim for another uptick. Right now, $85,000 is crucial support, while $92,400 stands as immediate resistance.”
The leading cryptocurrency dipped to $90,316 after reaching a peak of $91,965 in the prior session.
Back in October, Bitcoin surged to $126,000 during a peak period for the market. In April, it fluctuated around $75,000 before dropping significantly.
“Today signifies a notable change with the Fed stopping quantitative tightening, potentially easing significant liquidity drains and improving conditions for risk assets. Holding steady between $86,000 and $87,000 could pave the way for a move towards $89,000 to $90,000,” stated CoinSwitch MarketDesk.
Other cryptocurrencies have also seen volatility, with ETH down 5.87%, BNB dropping 5.18%, ADA falling 7.75%, and SOL decreasing 6.87% over the last 24 hours. Memecore was a standout performer, gaining over 10%, followed by JUST with more than 7% and MYX Finance with a 5.72% increase. Conversely, Zcash fell by 17.13%, Ethena dropped over 14%, and Starknet decreased by 13.34%.
“Market sentiment remains a bit unclear. Additionally, China’s central bank has reiterated its ban on cryptocurrencies and is contemplating a tightening of its regulations on stablecoins,” remarked the CoinDCX research team.
The prices of major cryptocurrencies as of 9:22 a.m. on December 1 are outlined below:
“High trading volumes coupled with slight price drops usually point to a cautious market atmosphere. Traders are present but not fully convinced. This often shows profit-taking or a wait for a macroeconomic catalyst for price increases. In summary, the market appears balanced yet hesitant, with activity indicating interest while price movements suggest uncertainty,” added the WazirX trading desk.
