Bitcoin, the world’s largest cryptocurrency, experienced a sharp decline to around $85,000 as the market received a fresh wave of selling pressure, which created yet another shift in global rate expectations. This price drop has brought BTC down more than 7% in 24 hours and more than 20% over the past month.
In a note published on Telegram, market maker Flow Desk said the market will continue to struggle amid heavy selling of bitcoins from crypto wallets.
Cryptocurrencies Lose $1.2 Trillion in the Past Six Weeks
Market analyst Tony Sycamore said, “If it’s telling a story about risk sentiment as a whole, then things could start to get really, really ugly, and that’s the concern now.” About $1.2 trillion has been wiped off the market. Bitcoin’s fall is also followed by other crypto coins, including Ether, XRP, and BNB, which fell significantly on November 21st.
Market experts are now having a keen eye on the market and the key psychological support levels around $80,000 and $85,000, because this sharp decline has created a sense of fear in long-term, serious crypto investors.
Key Pointers Behind the Crash
Record ETF Outflows have been a key cause of this crash. This November has seen record outflows from United States spot Bitcoin ETFs, totaling around $3.8 billion. These redemptions force investors to sell, which turned into a sharp decline.
Apart from this, on-chain data indicates that large and long-term investors are also selling bitcoin to book profit.
The downturn market has affected the entire crypto market beyond Bitcoin, including Ether, Solana, and XRP, etc. These coins have also experienced a decline.
The experts and market analysist have warned the investors to be careful while investing any new money in the market. The experts have assumed that the bitcoin can further decline and can reached to a price of just $10,000.
Syed Ziyauddin is a media and international relations enthusiast with a strong academic and professional foundation. He holds a Bachelor’s degree in Mass Media from Jamia Millia Islamia and a Master’s in International Relations (West Asia) from the same institution.
He has work with organizations like ANN Media, TV9 Bharatvarsh, NDTV and Centre for Discourse, Fusion, and Analysis (CDFA) his core interest includes Tech, Auto and global affairs.
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