Bitcoin Crash: There has been havoc in the crypto market for the last few days. At the same time, last month the enthusiasm for Bitcoin was at its peak and it touched its all-time high of $1,26,000. In such a situation, investors did not expect that this crypto super star would suddenly collapse. The very first day of December has proved to be a big shock for crypto. Bitcoin fell 4.3% to below $88,000 in Asian trading on Monday morning, while Ether fell a full 6% to less than $2,900.
According to CNBC, last week Bitcoin tried to gain a foothold at the level above $90,000, but on the very first day of December, a new wave of selling took away this momentum. According to Bloomberg’s report, there was sudden profit taking and an atmosphere of fear, the entire crypto market was shaken and investors panicked and started selling cryptocurrencies.
Why is Bitcoin falling?
According to the report of Mint, data from CoinMarketCap has revealed that the market has fallen further in the last 24 hours, and this fall has been going on for the last 30 days. This is further increasing the huge decline of 19.85%. The reason for this is that people are investing by taking more loans and now that loan is not being repaid, huge liquidations are taking place, and there is an atmosphere of fear about the economy all over the world.
Apart from this, the second major reason is that the bond yield in Japan has reached a 15-year high and there is a possibility that the Bank of Japan may increase the interest rates, due to this fear there is a sell-off in the entire Asian stock market which has reached to crypto. In such a situation, the high risk bets that were placed by the investors in the market are all getting liquidated, in just 24 hours long positions worth 16 million dollars of Bitcoin were liquidated, that is, those who wanted to go up. They were sitting in hope that their pockets would be cleared.
How will Bitcoin fare in December?
At 9:34 am, Bitcoin was trading at $86,298.26, down 4.45%. According to the report of CoinMarketCap, Bitcoin has broken its important support level of $ 90,954, due to which the selling intensified and the price is falling towards the Fibonacci levels of $ 87,000. Experts are keeping an eye on whether the world’s largest cryptocurrency will reach its lowest level of $80,659 in October if liquidation increases.
Giving his opinion on Bitcoin, an expert told Mint that after Monday’s strong selloff, crypto traders are now preparing to fall further. FalconX’s Asia Derivatives Head Shawn McNulty said, “The beginning of December is going to be risky. The biggest tension is that money has almost stopped coming into Bitcoin ETFs and there are no buyers in the fall. We think there will be pressure on the market throughout this month. Now everyone’s eyes are on $ 80,000, if Bitcoin breaks this level too, then there is going to be a big bang.”
After this, the analyst said that next week is bringing the complete report card of America’s economy, which will know whether the interest rates will go up or down in 2026. These upcoming figures will tell the Federal Reserve whether it should continue its rate cutting pace or hit the brakes. Here, President Donald Trump announced on Sunday that he has finalized the name of the next Fed Chairman and now the interest rates are expected to come down, because Trump is feeling slow from the current Chairman. Meaning, a tremendous game of economy and politics has started in America. Volatility is being seen in Asian stock markets since this morning, after last week’s spectacular rise, there seems to be a slight stagnation.
