Bitcoin plummets, market panic

VHO - In just one short week, the cryptocurrency market witnessed a spectacular "evaporation" of 330 billion USD. The brightest star, Bitcoin, continued to slide, reaching a six-month low and causing investors to panic.

Illustration photo

On the morning of November 16, Binance recorded each Bitcoin trading around the $95,000 mark. This is the third consecutive day that this digital currency has lost value, marking its lowest level since May. The sell-off not only swept Bitcoin but also caused a series of other major cryptocurrencies to stagger. Ethereum fell 7.7%, Solana lost up to 11% of its value in just one week.

The broader CoinDesk 20 Index was no exception, plunging about 5.8%, with the underlying cause believed to stem from last month’s sell-off, as leveraged positions were liquidated and long-term investors began to take profits.

Another worrying sign comes from Bitcoin ETFs. Bloomberg data shows that outflows from these funds in a recent day hit the second-highest level since their approval, reflecting caution and a retreat from institutional investors.

A report from 10X Research further reinforced the bearish view, stating that there is currently “no new buying power strong enough to drive prices up.” The organization believes that on-chain indicators confirm that Bitcoin has entered “bear market mode.” They warn that if the price breaks the $93,000 threshold, a deeper decline is likely to occur.

Even Fundstrat's Sean Farrell, a well-known bullish analyst, has now admitted that "Bitcoin momentum is very weak." He said the market lacks "catalysts" - big news or policy changes - to attract money back. The situation is further complicated by the longer-than-expected US government shutdown, disrupting liquidity and slowing the flow of money back into the economy .

In addition, the fact that the US Federal Reserve is unlikely to cut interest rates in December has dimmed expectations of a "Christmas rally" for Bitcoin.

However, Mr. Farrell also offers a positive perspective. He believes that a stronger correction in the overall risk market could be the necessary “cleansing” medicine to reset the price level, thereby opening up attractive buying opportunities for new investors. And for him, Bitcoin may need to return to the $90,000 price zone to become attractive to them again.

Source: https://baovanhoa.vn/kinh-te/bitcoin-lao-doc-thi-truong-hoang-mang-182027.html