Outlook Business Desk
On December 1, the cryptocurrency market saw a sharp sell-off, with Bitcoin falling 4.3% to under $88,000 and Ether dropping 6% below $2,900 during early Asian trading, according to Bloomberg.
The cryptocurrency market now has a capitalisation of $2.94trn, with 24-hour trading volumes of $116.18bn, as per CoinMarketCap. Reports claim that leveraged liquidations and macroeconomic concerns have increased selling pressure, continuing the 30-day market decline.
Fears of a Bank of Japan interest rate hike, as per the report, amid 15-year high bond yields triggered Asian market sell-offs. Bitcoin recorded $16mn in long liquidations over 24 hours, amplifying market losses.
Bitcoin breached key support at $90,954, accelerating declines toward the $87,000 Fibonacci level, the report said. Analysts warn that further liquidations could push it closer to the October low of $80,659.
Another key crypto coin Ethereum declined 5.07% to $2,830, with a market capitalisation of $341.57bn and trading volume of $18.02bn.
US Dollar-linked altcoin Tether is trading at $1, showing minimal movement. Its market capitalisation stands at $184.65bn, down 0.01%, while 24-hour trading volume surged 48.43% to $82.19bn.
XRP is trading at $2.05, down 6.55%, with a market capitalisation of $123.94bn and 24-hour trading volume of $3.15bn, up 53.2%. Binance Coin rounds off the top five, down 4.71% to $831.89, with market cap of $114.58bn and volume of $1.91bn, up 43.79%.
Traders are preparing for further declines in the crypto market. One of them told Bloomberg that low inflows into Bitcoin ETFs and absent dip buyers are key concerns, with $80,000 as the next major support level.
Research Analyst Riya Sehgal from Delta Exchange said Bitcoin’s drop below $87,000, along with a 38% surge in trading volumes, has intensified bearish momentum.