Bitcoin price: Deep decrease
As of 5:06 p.m. today Vietnam time, Bitcoin (BTC) - the world's largest cryptocurrency in terms of market value continued to rotate, currently down sharply by 5.08%, reaching 86,713.28 USD.
This new price contributes to bringing market capitalization to 1,730 billion USD, down 73 billion USD. On the other hand, trading volume in the 24 hours increased by 8.35 billion USD, reaching 63.21 billion USD.
Assessment and forecast
Bitcoin price in December is becoming the focus of attention as the market ended November with negative developments. BTCs have fallen more than 17% in the past month, breaking the usual uptrend of November and raising questions about whether the bounce back from the $80,000 zone has really hit rock bottom?
History shows that December has seen quite erratic developments for Bitcoin. The average long-term increase is 8.42% but the medium-sized increase is only 1.69%. Over the past 4 years, Bitcoin has decreased by three times in December.
The past November increased the cautious sentiment when the BTC decreased by more than 17% instead of maintaining the familiar price increase cycle.
ETF capital flows also showed caution. November ended with a net withdrawal of $3.48 billion from Bitcoin ETFs delivering immediately in the US. The most recent strong capital flows have stopped since July. However, since then, the capital flow has continuously fluctuated erratically.
Shawn Young - lead analyst of MEXC - commented that ETFs need stronger and more stable demand before Bitcoin can start a significant increase:
"The clearest signal that a new upward momentum is the better risk-off sentiment, better liquidity... When Bitcoin ETFs record many consecutive sessions with capital flows at 200-300 million USD, that could be the time for the organization to return and activate the next uptrend" - Mr. Young said.
Meanwhile, Mr. Hunter Rogers - Co-founder of TeraHash - said that the December setting, although it has experienced a strong decline, is still quite quiet: "I did not expect December to be too volatile - not increase sharply, not decrease deeply. There is a high possibility of moving sideways and increasing slightly. If the ETF is stable and volatile, the BTC can create a small positive surprise, but this is still the recovery stage".
In general, both seasonal factors and ETF flows mean that December can maintain caution, unless ETF demand increases dramatically.
In Vietnam, Bitcoin and other cryptocurrencies have not been recognized as a legal payment method and are not protected by law. Investors need to be cautious, avoiding risks from strong price fluctuations and fraud related to cryptocurrency.
