Bitcoin tumbles over 4% to below $88,000
What's the story
The cryptocurrency market is witnessing a major correction, with Bitcoin falling sharply in early Asia trading. The world's largest cryptocurrency by market capitalization fell 4.3% to below $88,000, while Ethereum also witnessed a drop of 6% to below $2,900. The decline comes after a weeks-long selloff that started when some $19 billion in levered bets were wiped out in early October.
Recovery attempts
Market recovery and future predictions
Despite the recent downturn, Bitcoin managed to recover last week, climbing above $90,000. However, after Monday's selloff, traders are preparing for further declines. Sean McNulty of FalconX said "it's a risk off start to December," highlighting concerns over low inflows into Bitcoin exchange-traded funds and lack of dip buyers. He also indicated that $80,000 will be the next key support level for Bitcoin amid ongoing structural headwinds this month.
Economic indicators
US economic data and monetary policy impact
The coming week will provide key insights into the US economy's strength, influencing policymakers' decisions on interest rates. President Donald Trump has decided on his nominee for the next Federal Reserve chair, a move linked to his expectations of lower interest rates. This focus on monetary policy is also affecting global markets, with Asian stocks fluctuating in early Monday trading after their best weekly performance in nearly two months.