Significant Bitcoin Price Correction
Bitcoin fell by 4.8% during Monday's trading, dropping to around $93,000, with a single-day decline of over $4,800. This figure represents more than 55% of last week's increase of $8,100 for Bitcoin.
Analysts believe that this pullback is mainly due to investors readjusting their positions before the year-end to cope with the upcoming market changes, especially in historically strong December.
Ryan McMillin, Chief Investment Officer of Merkle Tree Capital, stated in an interview with Decrypt: "We see two factors working together to temporarily depress the price of Bitcoin." He pointed out that there is a "sell wall" near the psychological barrier of $100,000, as investors hope to profit from this volatility three weeks after Trump's election.
MicroStrategy Sets Historic Highs in Bitcoin Accumulation
Meanwhile, MicroStrategy announced on Monday that it had completed its largest Bitcoin purchase to date, totaling $5.4 billion, bringing its total Bitcoin holdings to 386,700 BTC, valued at approximately $37.6 billion. This is the largest purchase since MicroStrategy began accumulating Bitcoin, marking the company's strong confidence in cryptocurrencies.
McMillin also mentioned that the increase in leveraged long positions has put pressure on the market. "Market makers may intentionally drive down prices to trigger the liquidation of leveraged longs," he said. This means that to trigger these liquidations, market makers may push the price of Bitcoin downward.
Surge in Leveraged Liquidation, Divergent Market Sentiment
On Monday, the amount of leveraged liquidation for Bitcoin surged to $550 million, with 70% coming from long positions. Although this figure fell to $360 million on Monday, it still indicates a high level of market attention and divergent market sentiment regarding Bitcoin.
McMillin emphasized that this phenomenon is part of normal market behavior and expects Bitcoin's price to retest the $100,000 level within the week.
Rumble Adopts Bitcoin Reserve Strategy
Not just MicroStrategy, but publicly traded video sharing and cloud service provider Rumble Inc also recently announced that its board approved a strategy to allocate up to $20 million of cash reserves to Bitcoin. This move echoes the trend of corporate Bitcoin adoption advocated by companies like MicroStrategy and Metaplanet Holdings.
Rumble stated that this diversification strategy emphasizes its belief in Bitcoin as a hedge against inflation and a long-term value preservation tool.
Market Status Analysis
Market analysts generally believe that Monday's Bitcoin sell-off is a typical market dynamic, as investors adjust their positions to hedge against potential downside risks. "It is not uncommon to see pullbacks in a bull market," said Nick Forster, founder of the DeFi derivatives protocol Derive. He further pointed out that strong structural bullish factors facing Bitcoin, such as the interest rate reduction cycle and the evolving regulatory framework, support its long-term upward trend.
In addition to Bitcoin, other cryptocurrencies in the top ten by market cap also generally fell, with Dogecoin experiencing the largest decline, dropping about 9.5% to $0.38. CoinGecko's data reflects the turbulent state of the entire crypto market.