Bitcoin price: Reversing to increase prices
As of 17:32 today, Vietnam time, Bitcoin (BTC) - the world's largest cryptocurrency in terms of market value continued to rotate, currently increasing slightly by 0.29%, reaching 86,816.41 USD.
This new price contributes to bringing market capitalization to 1,732 billion USD, an increase of 2 billion USD. On the other hand, trading volume in 24 hours increased by 8.17 billion USD, reaching billion USD.
Assessment and forecast
Nearly 1 billion USD of the position of a cryptocurrency using leverage was "cleared" in the sharp decline on Monday, continuing to exploit the selling momentum in the cryptocurrency market.
Bitcoin fell as low as 8% to $83,824 in New York at one point, bringing the decline since early October to nearly 30%. Ether has also plummeted to 10% to $2,719, down 36% over the past seven weeks. This price decrease will have a heavier impact on small and liquidity-poor accounts - assets that often fluctuate strongly and increase better during recovery periods. The MarketVector index, which tracks the 50 smallest digital assets in the top 100, has lost nearly 70% since the beginning of the year.
According to Coinglass data, the cryptocurrency market has become fragile after many weeks of decline starting from the beginning of October, when about 19 billion USD of leverage orders were "inflated" by fluctuations caused by US President Donald Trump with the threat of increasing taxes.
Traders use liquidation data to assess the level of leverage in the system, measure risk appetite and see whether a sell-off is truly "clearing" excessive speculation. However, this amount of data may not be complete, as some exchanges are said to not disclose all liquidation data, making it difficult to assess real risks in the system.
Sean McNulty - Head of APAC derivatives trading at FalconX commented: "This is a risk-off start to December. The most worrying thing is that the capital flow into Bitcoin ETFs is too small and there is almost no bottom-fishing buying power. We expect these pressures to continue this month, with the $80,000 mark being the next important support level for Bitcoin."
cryptocurrency is also affected by global macro fluctuations, as the US stock market opened the week cautiously. Japanese stocks fell and the Yen increased after Governor of the Bank of Japan (BOJ) Kazuo Ueda gave the clearest signal about the possibility of raising interest rates this month.
According to Karim Dandashy, in December, investors will focus on global monetary policy orientation.
The market now expects the Fed to continue cutting interest rates after a brief panic last week that sent the probability of December falling to 30%, while the BOJ is likely to raise interest rates in response to developments in the JGB bond market.
