During trading on December 13th, the price of Bitcoin briefly dropped to just over $89,000. Compared to its record high of approximately $126,000 reached on October 6th, the cryptocurrency has lost nearly 30%.
Thus, after a week of attempting a recovery, the world's most valuable cryptocurrency failed to break through resistance levels. All upward price movements were wiped out as the market failed to hold the key price levels of $92,000 and $94,000.
According to Bloomberg, the price of Bitcoin is gradually sliding towards the lowest point in its recent trading range, as any price rebound is quickly met with selling pressure from investors who bought at the historical peak in early October.
According to cryptocurrency data analytics firm Glassnode, multiple indicators are simultaneously signaling a “mild downtrend,” where modest capital inflows are outweighed by consistent selling pressure from large-scale investors.
Bitcoin's price is stuck as investors flee. Estimated accumulated losses have surged to 4.4%, the highest in nearly two years. This signals a shift in investor sentiment from "euphoria" to "tension and uncertainty".
Bitcoin prices are constantly fluctuating wildly (Image: Binance).
Alex Kuptsikevich, an expert at the financial firm FxPro, believes that the cryptocurrency market has essentially entered a bear market, arguing that any recovery attempts are likely to only create more opportunities for sellers to return.
If we consider the price movements of Bitcoin within the broader economic context, we can see that the world's largest cryptocurrency has lost its price correlation with other risky assets. While most have recovered, the price of Bitcoin has fallen.
The market is being squeezed by weak liquidity and dwindling risk appetite following the Federal Reserve's announcement of a 25 basis point interest rate cut. Glassnode also noted that volatility has begun to cool down and historically tends to continue contracting after the last major macroeconomic event of the year, in this case the FOMC meeting on December 10th.
Mitch Galer, a trader at GSR, said that the macroeconomic landscape is increasingly dominating cryptocurrency price movements. Trading flows have had a significant impact in recent months – a hallmark of bear markets – amid the US government shutdown limiting access to information from the Fed, unclear policy direction, and increased geopolitical risks.
Despite forecasts of high short-term volatility, Galer believes there is still room for a year-end rebound, even though market sentiment is currently very negative.
Source: https://dantri.com.vn/kinh-doanh/bitcoin-bi-lien-tuc-bi-xa-hang-thi-truong-tien-so-hoang-mang-20251214012214052.htm
Comment (0)