Bitcoin Market Update
Bitcoin has dropped over 5% in the last 24 hours, settling around $86,316 as of 9:22 a.m. IST on December 1. This shift has also impacted other cryptocurrencies in the market.
During a rather volatile morning session, Bitcoin dipped to $85,800 but managed to touch a high of $91,593 at one point.
Previously, Bitcoin maintained the $91,000 level for several days before this recent downturn, which resulted in a notable selloff, erasing nearly $140 billion from the cryptocurrency’s market cap just within a few hours.
Analysts suggest that traders are adopting a more cautious approach ahead of remarks from Federal Reserve Chairman Jerome Powell later in the day, which are likely to influence expectations for the forthcoming FOMC meeting.
According to the CME FedWatch tool, the likelihood of the Fed lowering interest rates to between 350 and 375 basis points has jumped to 87.4%, up from 71% just a week ago.
On the online voting site Myriad, 73% of participants expect Bitcoin to hit $100,000, while the remaining voters foresee a drop to $69,000.
“Although there’s been a pause in momentum, Bitcoin ETFs recorded their first weekly net inflows since October, suggesting a possible renewal in institutional interest. The improving liquidity and deepening market also support a positive outlook,” explained Akshat Siddhant, a quantitative analyst at Mudrex. “If market sentiment stabilizes, Bitcoin could see another upward movement. Currently, $85,000 is a significant support level, while $92,400 acts as immediate resistance.”
The world’s leading cryptocurrency fell to $90,316 after reaching a high of $91,965 in the previous trading session.
Bitcoin peaked at $126,000 in October, representing a strong period for the market, although it hovered around $75,000 in April before declining.
“On a macro level, today is significant as the Fed is wrapping up quantitative tightening, which could alleviate some liquidity pressure and improve the outlook for riskier assets. Bitcoin holding between $86,000 and $87,000 potentially opens the door for a rise to $89,000 or even $90,000,” noted CoinSwitch MarketDesk.
Other cryptocurrencies have also experienced volatility; during the last 24 hours, ETH saw a decrease of 5.87%, BNB 5.18%, ADA 7.75%, and SOL 6.87%. On the flip side, Memecore recorded more than a 10% rise, followed by JUST with more than a 7% increase, and MYX Finance rising by 5.72%. Meanwhile, Zcash dropped by 17.13%, Ethena fell by over 14%, and Starknet declined by 13.34%.
“Market sentiment continues to be shaky. Additionally, China’s central bank has reaffirmed its stance against cryptocurrencies and has threatened to tighten its restrictions on stablecoins,” the CoinDCX research team commented.
As of 9:22 a.m. on December 1, the prices of major cryptocurrencies are under observation.
“High trading volumes accompanied by slight price drops often indicate a cautious market sentiment. Although traders are engaged, there seems to be a lack of strong conviction. It could signify profit-taking, rotation, or a wait for a macro catalyst that might lead to price increases. Overall, the market feels balanced yet unsure, with strong volumes showing interest but the price movements suggesting uncertainty,” added the WazirX trading desk.
