Bitcoin (BTC) and the wider cryptocurrency experienced another wave of overnight selling which deepened on Dec. 4 as the majority of Altcoin tokens pummeled to multi-month lows. This newest wave of selling pressure managed to successfully break below the $50,000 psychological level, sending the BTC/USD price as low as $42,333.
However, the BTC/USDC pair on Huobi global suffered a deeper drawdown, as evidenced in lows of $28,800 on Dec. 4. As noted by Chinese influencer, Collin Wu ”The BTC/USDC trading pair in Huobi Global dropped to as low as $28801.87 when it fell sharply, showing insufficient depth”.
BTC/USDC Daily ChartEthereum (ETH) was hit with a near 15% drawdown in price that smashed its value to lows of $3,575 last seen since Oct. 14. The sell-off hit the Altcoin market hard as a majority of the coins in the top 100 were seen recording losses between 15% and 30% as of press time.
The Sandbox (SAND) fell nearly 20% to a low of $4 and Dogecoin (DOGE) shed almost 22% of its value to hit a low at $0.122. Terra (LUNA) which reached an all-time high at $74.15 just a day ago, has now fallen 17% and trades below $60 at the time of writing.
Investors seem worried at the emergence of the ”omicron” variant and hawkish comments from the Federal Reserve. Sour comments from Billionaire investor Charlie Munger contributed likewise as he made a comparison of the price action in the crypto market to the dot-com era that ended with the bubble popping. The 97-year-old vice chairman of Berkshire Hathaway reportedly said he wished cryptocurrencies had ‘never been invented’ and admires China for banning them.
Bitcoin regained to around $47,000 in a quick rebound as investors bought the dip. El Salvadoran president, Nayib Bukele tweeted the purchase of 150 coins ”El Salvador just bought the dip! 150 coins at an average USD price of $48,670”. Tron CEO, Justin Sun stated that he followed El Salvador and bought 100 bitcoins at an average price of 47,627.03. Several Altcoins followed in a quick retrace as traders rushed to buy the dip.
Courtesy: SantimentSantiment notes that prices are bouncing with the largest buy the dip interest spike in 3 months ”Bitcoin fell all the way to $43.5k about an hour ago, along with Ethereum dropping to $3.54k. However, prices are bouncing with the largest buy the dip interest spike in 3 months. Renewed covid concerns among larger stakeholders should tell the story”
Chinese influencer, Collin Wu says ”At present, the futures funding rate of major exchanges is generally less than 0.01%, and most of them are even negative, which shows that the market has strong bearish sentiment”. Also noting that today’s declines had the largest amount of liquidation since September 20, a figure exceeding $1.1 billion.
It should be recalled that Bitcoin recovered to highs of $66,999 in October after dipping in September, thus this outcome could be expected if events play out the same.
Image Credit: Santiment, Shuttersstock
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