Source: Jintshi Data
Some analysts still remain optimistic, claiming that this kind of pullback is “very typical” in the cryptocurrency bull market.
Earlier this week, Bitcoin fell from its all-time high. As of Friday’s European session, Bitcoin has fallen by more than 10% for three consecutive days, and the narrowing of the US monetary policy easing space has dampened speculative enthusiasm.
In the European session on Friday, Bitcoin continued to decline and once approached $95,000. Earlier, Bitcoin had just set a new historical high of over $108,000, and this round of decline has had a greater impact on altcoins such as Ethereum and Dogecoin.
On Thursday, a group of direct investment bitcoin exchange-traded funds (ETFs) in the United States ended 15 consecutive days of capital inflows, setting a record outflow of $680 million, highlighting a shift in market sentiment.
FRNT Financial’s data and analytics director Strahinja Savic said seeing this kind of pullback in a crypto bull market is “very typical,” while QCP Capital said in a report that the fundamental reason for the selloff is the market’s “excessively optimistic” positioning.
The Fed’s hawkish turn on Thursday has put pressure on most risk assets. Since Donald Trump, who is pro-cryptocurrency, won the US presidential election on November 5th, the price of Bitcoin has still risen by nearly 50%.
Edward Chin of Parataxis said, “This appears to be investors taking profit at the end of the year, and there is no fundamental factor that triggered this sell-off.”
Due to the reduced expectations of the Federal Reserve’s interest rate cuts in 2025, some investors may be choosing to reduce their exposure and take profit.
Chris Weston, Research Director of Pepperstone Group, wrote in a report, ‘Technically, caution should be exercised in the short term. This does not mean that we will see a sharp decline in prices soon, but the momentum of the uptrend has clearly weakened, and buyers have lost their dominant position and control over the market.’
Source: Sina
Author: Market Information
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