First Mover Americas: Bitcoin’s Price Sinks Below $93K in Recent Correction

Crypto Market Overview for November 25, 2024: Insights and Price Shifts

Starting Monday, First Mover Americas will evolve into Crypto Daybook Americas, delivering your essential morning briefing on the latest developments in the crypto markets. Published at 7 a.m. ET, this new format will give you everything you need to start your day with valuable insights into overnight market movements and what lies ahead.

Market Snapshot:

• CoinDesk 20 Index: 3,108.77 (-9.55%)
• Bitcoin (BTC): $92,029.63 (-6.72%)
• Ether (ETH): $3,319.02 (-4.95%)
• S&P 500: 5,987.37 (+0.3%)
• Gold: $2,632.36 (+0.57%)
• Nikkei 225: 38,442.00 (-0.87%)

Key Stories:

Bitcoin (BTC) continued its correction, falling another 6% in the past 24 hours and slipping below $93,000. This marks a significant pullback from its near-touch of $100,000 on November 22. While the cryptocurrency had gained more than 10% earlier in the week, its rise has now slowed, with weekly gains reduced to just under 1%. Other cryptocurrencies, including Solana (SOL), BNB, Cardano (ADA), and Dogecoin (DOGE), also suffered losses of up to 7% in the same timeframe. The broader CoinDesk 20 index (CD20), which tracks the largest digital assets by market capitalization, has fallen nearly 3% in the past day.

Analysts view this correction as part of the normal cycle in a bull market, with a potential drop of up to 10% from Bitcoin’s peak. Even so, the short-term target for BTC remains around $100,000. Some market indicators point to further decline, possibly driving the price to as low as $90,000. A key indicator to watch is the 25-delta risk reversal, which tracks the volatility premium of out-of-the-money calls relative to puts. On Deribit, calls expiring later this week are now priced lower than puts, signaling a preference for downside protection as the market correction continues.

Ether Outperforms Amid Market-wide Decline:

Ethereum (ETH) has shown notable strength amid Bitcoin’s decline, reaching above $3,500 for the first time since June. Although Ether has also seen a 5% drop in the last 24 hours, it remains more resilient than the broader market, which is down over 8%, according to the CoinDesk 20 Index (CD20).

Recent shifts in investor sentiment have seen capital flow towards smaller, riskier tokens, marking a shift from Bitcoin’s dominance. The ETH/BTC ratio, which tracks Ether’s performance relative to Bitcoin, had fallen to its lowest point since March 2021 earlier this week. However, Ether has gained 15% since, recovering to 0.3660. This trend suggests that Ethereum is gaining momentum as investors look to diversify beyond Bitcoin.

Chart of the Day:

Leveraged ETF Volatility

The Defiance Daily Target 2x Long MSTR ETF (MSTX), which aims to double the daily performance of MicroStrategy’s stock (MSTR), experienced a dramatic 41% drop over three days, falling from $220 to $112. This comes amid a 20% dip in MicroStrategy’s stock, which is currently trading at $403. The sharp volatility in leveraged ETFs highlights the risks inherent in these high-leverage products.

Source: TradingView