Crypto Market Update for November 25, 2024: Bitcoin Faces Correction Amid Profit-Taking
Starting Monday, First Mover Americas will transition to Crypto Daybook Americas, your go-to morning update on the latest crypto market developments. Delivered at 7 a.m. ET, this new format will provide a quick, insightful snapshot of overnight market movements and what to watch for throughout the day.
Market Overview:
- 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 Highlights:
Bitcoin (BTC) has fallen 6% over the last 24 hours, dropping below $93,000 after briefly approaching the $100,000 mark on November 22. This price drop represents a pullback after a period of significant growth. As of now, Bitcoin’s weekly gains have been reduced from 10% to just under 1%. Other major cryptocurrencies like Solana (SOL), BNB, Cardano (ADA), and Dogecoin (DOGE) have also experienced losses of up to 7% in the past 24 hours, with the broader CoinDesk 20 Index (CD20) down nearly 3%.
This market correction is considered normal during a bull market. Typically, Bitcoin experiences corrections of 20% or more, flushing out excess leverage and resetting the market. Despite this, analysts remain bullish in the short term, with the $100,000 target still in place. However, some indicators suggest that Bitcoin’s price could dip further to as low as $90,000 before stabilizing.
The 25-delta risk reversal, a metric showing the volatility premium of call versus put options, is one of the key indicators signaling a potential for further downside. According to data from Amberdata, for the first time in over a month, calls expiring this Friday are priced lower than puts, reflecting a shift towards protective strategies in anticipation of further market weakness.
Ether Outperforms Amid Broader Market Drop:
Ether (ETH) has demonstrated relative strength compared to Bitcoin during this correction. On Monday, Ether reached over $3,500 for the first time since June, as Bitcoin began its slide. While Ether has also fallen by 5% in the past 24 hours, it remains more resilient than the broader market, which has seen an overall decline of more than 8%. Investors are beginning to rotate capital into smaller, more speculative altcoins as Bitcoin’s rally stalls.
The ETH/BTC ratio, a measure of Ethereum’s performance relative to Bitcoin, saw a sharp decline earlier this week, reaching its lowest point since March 2021. However, it has since rebounded by 15%, signaling renewed interest in Ethereum, particularly as a diversification play within the broader crypto market.
Chart of the Day:
Volatility Hits MicroStrategy ETF:
The Defiance Daily Target 2x Long MSTR ETF (MSTX), which amplifies the daily performance of MicroStrategy’s stock, has suffered a major drop, losing 41% of its value in just three days. The ETF, which tracks the price movements of MicroStrategy’s stock, fell from $220 to $112 as the company’s shares dropped 20%, now trading at $403. This sharp volatility highlights the risks of leveraged products, especially those tied to Bitcoin-heavy companies like MicroStrategy.
Source: TradingView
