The cryptocurrency market dropped 2.10% in the past 24 hours, with total capitalization falling to $3.17 trillion, its lowest in five days. Bitcoin led the decline, sliding 8% from its November peak of $99,830 to $91,377, driven by profit-taking from long-term holders and technical overbought signals. Futures volatility also increased as traders shifted to protective strategies, with December’s $11.8 billion options expiry likely to cause further price swings.
Analysis from CryptoQuant shows $60 billion worth of Bitcoin moved by long-term holders in the past month, with November marking the heaviest profit-taking of the current cycle. Bitcoin futures experienced heightened volatility due to overleveraged positions. Traders are adopting protective strategies, as evidenced by a 30% drop in the call-put skew index for options expiring December 27.
Altcoins had mixed performance: Fantom (FTM) surged 13.86%, while Stellar (XLM) and The Sandbox (SAND) fell over 10%. Analysts suggest capital is moving into promising altcoins amid Bitcoin’s consolidation.
Despite short-term volatility, institutional players remain bullish. MicroStrategy recently bought 55,500 BTC, signaling confidence in Bitcoin’s long-term potential. The market’s direction hinges on Bitcoin holding key levels and altcoin momentum in the coming weeks.
