Bitcoin (BTC) briefly broke above the $100,000 mark last night, but was immediately hit by selling pressure, falling from a high of $100,424 to below $98,000 in the early hours of the morning, where it fluctuated for several hours. At 5 a.m. this morning, it plunged further to $94,000, a maximum decline of 6.4%. As of the time of writing, it has rebounded to $97,239, with a 24-hour decline narrowed to 1.83%.
Ethereum (ETH) also plunged from $3,945 in the early hours of the morning to $3,465 at one point, a maximum decline of 12%. The huge volatility has resulted in a bloodbath in the market, with the overall market capitalization of cryptocurrencies evaporating by nearly $200 billion in the past 24 hours, currently around $3.6 trillion. The composite index of small-cap coins, GMCI Small Cap, plummeted more than 15%, one of the largest declines of the year.
Viewpoint: Bit
coin may remain stagnant at $100,000 for a longer periodAccording to a report by Bloomberg, this round of cryptocurrency selloff seems to be due to the cooling of investors' euphoric sentiment towards the industry triggered by Trump's election. Charlie Morris, Chief Investment Officer of asset management firm ByteTree, analyzed that unless capital inflows surge, Bitcoin is likely to remain at $100,000 for a longer period.
$100,000 is a number we should get used to, because unless the flow of funds can surge from here, we will spend time there.
In a report, Fairlead Strategies LLC technical analyst Katie Stockton suggested adopting a "neutral short-term" investment strategy after Bit
coin failed to maintain above $100,000.10x Research: May just be a temporary consolidation phase before the recovery momentum of the bull market
According to a report by Coindesk on Monday, 10x Research pointed out that the crypto market has shown signs of weakening momentum, including declining trading volume and large profit-taking by long-term holders. Markus Thielen, founder of 10x Research, wrote in the report: "This may just be a temporary consolidation phase before the recovery momentum of the bull market."
However, traders should now closely monitor which positions are performing well and which are performing poorly, as the rebound is entering a stage where not everything will continue to rise.
To effectively navigate this market, traders should avoid the weaker market segments and focus on their core, high-conviction positions.
In a report on Monday morning, digital asset hedge fund QCP noted that traders in the options market are increasingly preparing for a sideways price trend before the end of the year, taking profits from their previous bullish bets and may roll positions into the new year.
"While we remain structurally bullish, the spot [price] may fluctuate within this range for the remainder of the holiday season."
