The correction in the cryptocurrency market led by Bitcoin continued for the third day. During this process, Bitcoin lost 3.5% of its value in the last 24 hours. After multiple rejections at the $ 100,000 level, Bitcoin fell another 4% to $ 92,785, its lowest level during the day. This decline was recorded as the biggest single-day loss for Bitcoin since Donald Trump's victory in the US elections. According to experts, there are several important factors behind this decline; these include the monthly expiration of Bitcoin options, Trump's tariff concerns, partial profit booking and ETF outflows.
Bitcoin price drops below $93,000$BTC
Bitcoin fell 4% to below $93,000 before climbing above the critical support level of $94,000. However, with the recovery effort, expectations for $100,000 have diminished. The current price is down nearly 4% to $94,512. Daily trading volume increased by 60% to $84.84 billion. On November 26, according to Reuters, US President Donald Trump announced his decision to impose new tariffs on imports from China, Mexico and Canada. This led to selling pressure on Bitcoin and other cryptocurrency indices, along with US stock futures. Data shows that major tokens such as Solana (SOL), BNB, Cardano (ADA) and Dogecoin (DOGE) have also fallen by as much as 7% in the past 24 hours. These developments caused Bitcoin to fall short of its $100,000 target. However, analysts consider the correction of about 10% from the peak as a natural development.
Trump’s comments dampened market optimism on Monday following the appointment of Scott Bessent as US Treasury Secretary last weekend. This led to corrections in Bitcoin and altcoins in early trading hours on Tuesday. However, IG Australia Pty Market analyst Tony Sycamore noted that Bitcoin’s recent pullback was not a “reversal to the downside” and was actually a “needed correction to offset overbought values.” In addition, a total of $9.4 billion in Bitcoin options contracts are set to expire on Friday, which could trigger strong Bitcoin price volatility. According to Deribit derivatives data, the put/call ratio is at 0.83, while the maximum pain point is set at $78,000. In addition, the daily trading volume of Bitcoin options increased by 124% to $4.47 billion. Open interest increased by 2% to $42.6 billion. The majority of these positions are focused on $82,000 call options and $70,000 put options. According to the “maximum pain” theory, the Bitcoin price could move towards the $70,000-$82,000 range.
The core PCE data to be released on Wednesday could lead to major movements in assets such as USD and gold and could be the most important development of the week. This data will also have a significant impact on US stocks, Bitcoin and other cryptocurrencies. The core PCE index is an important indicator of inflation and if it increases, it could affect the Fed’s approach to interest rates. Pepperstone analyst Chris Weston stated that an increase in the core PCE index could reduce expectations for a rate cut in December and indicate that inflationary pressures continue. In this case, it is thought that the Fed will maintain current interest rates to maintain economic stability.
With the Bitcoin price falling below $94,000, popular crypto analyst CrediBULL Crypto advised investors to be cautious about opening more long positions. CrediBULL noted that Bitcoin falling below $94,000 could trigger a move to $80,000, but it would not happen immediately. Another well-known Bitcoin analyst, Joe Consorti, stated that Bitcoin has been following global M2 money supply trends with a lag of about 70 days since September 2023. He warned that if this correlation continues, Bitcoin could experience a significant correction of 20-25% in the near term. On the other hand, large investors continue to accumulate Bitcoin. On Monday, MicroStrategy bought 55,000 Bitcoin and Bernstein analysts raised the target price of MSTR stock above $600. Semler Scientific also announced a new Bitcoin purchase yesterday.