Singapore-based cryptocurrency trading firm QCP Capital has released its latest analysis, noting that Bitcoin has dropped below the $93,000 mark over the past 24 hours, with more than $430 million in long liquidations. This decline coincided with a halt in the five-day streak of net inflows into spot Bitcoin exchange-traded funds (ETFs), which saw a $438 million outflow on Monday. Additionally, MicroStrategy saw a 4.4% decline in its holdings.
The pullback follows MicroStrategy’s record $5.4 billion Bitcoin purchase last week. With US holidays approaching and no immediate catalysts to drive prices higher, Bitcoin’s momentum toward the symbolic $100,000 level has paused.
Meanwhile, ETH’s implied volatility has shifted more toward puts than calls, reflecting similar sentiment in Bitcoin as the market takes a breather. Concerns over downside risks are increasing, particularly with the release of the Federal Open Market Committee (FOMC) meeting minutes tonight and the upcoming personal consumption expenditures data on Wednesday.
However, this pullback should not be seen as excessive. Bitcoin is simply retracing to levels observed early last week. The market had become extremely overbought following the election, with leverage, making a correction a natural and expected development.
Bitcoin And Ethereum Experience Declines, While Crypto Market Cap Drops 5.5%
As of the current writing, Bitcoin is trading at $93,443, reflecting a 5.45% decrease over the past 24 hours. Its 24-hour low and high are $92,410 and $98,724, respectively. Bitcoin’s market capitalization is $1.85 trillion, with a trading volume of $88 billion during the same period. Its market dominance is currently 57.62%.
Meanwhile, ETH is trading at $3,368, marking a 3.29% decline in the last 24 hours. The 24-hour low and high for the cryptocurrency are $3,353 and $3,545, respectively. Ethereum’s market capitalization is $405 billion, with a trading volume of $53 billion. According to SoSoValue, spot Ethereum ETFs saw an inflow of $2.83 million, with Bitwise leading the inflows at $8.75 million. In contrast, Grayscale experienced an outflow of $7.65 million.
Globally, the cryptocurrency market cap has decreased by 5.51%, now standing at $3.2 trillion. However, total trading volume has increased by 20.14%, reaching $244 billion, based on data from CoinMarketCap.
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