Bitcoin Price Drops to $87,000... Investor Sentiment Remains 'Extremely Fearful' [Decenter Market Report]

Bitcoin (BTC) fell ahead of the end of the year, leading to weakness in the cryptocurrency market as a whole.

According to CoinMarketCap, a global cryptocurrency market monitoring site, as of 8:00 AM on the 24th, BTC was trading at $87,568.77, down 0.99% from the previous 24 hours. Ethereum (ETH) was trading at $2,963.47, down 1.05%. BNB fell 1.56% to $843.36, and XRP fell 0.96% to $1.881. Solana (SOL) was trading at $124.04, down 1.11%.



The domestic market is on the rise. On Bithumb, a domestic cryptocurrency exchange, BTC rose 0.61% from the previous day to 130,406,000 won. ETH is up 1.47% to 4,417,000 won, and XRP is trading at 2,804 won, down 0.32%.

Cryptocurrency-related stocks plummeted that day. Digital Asset Treasury (DAT) companies, which have underperformed this year, were particularly hard hit. Strategy fell 3.88%, Twenty One Capital fell 8.30%, and Etherzilla plummeted 15.08%. Major stocks like Gemini, Circle, and Bullish also fell across the board.

Market analysts are suggesting that tax-loss selling is driving short-term volatility as the year approaches. They explain that the move to reduce tax burdens by selling loss-making assets coincides with a period of reduced liquidity. The digital asset hedge fund QCP Capital analyzed, "As we approach the end of the year, selling pressure is intensifying in a low liquidity environment."

However, some predict that year-end volatility will subside in the new year. QCP Capital stated, "The sharp price movements seen during the holiday season have historically shown a mean-reversion trend," and added, "Volatility is likely to ease as liquidity recovers in January."

Caution prevails regarding the medium- to long-term outlook. Paul Howard, Senior Director at trading firm Wincent, said, "In the absence of a clear bullish catalyst, a range-bound correction is likely to continue for the time being." He added, "It will take considerable time for the cryptocurrency market capitalization, currently at approximately $2.6 trillion, to recover to the $4 trillion range."

Cryptocurrency investor sentiment remains at a state of "extreme fear." The fear and greed index from cryptocurrency data analysis firm Alternative.me fell one point from the previous day to 24. A reading closer to zero indicates a weakened investor sentiment, while a reading closer to 100 indicates overheated market sentiment.

Reporter Do Ye-ri