Crypto Market Overview for November 25, 2024: Price Movements and Key Insights
Starting Monday, First Mover Americas will transition into Crypto Daybook Americas, your new go-to morning briefing, offering essential insights on what happened overnight in the crypto markets and what to expect the following day. Published at 7 a.m. ET, it will give you a jumpstart on your day with comprehensive, up-to-the-minute analysis.
Market Data Snapshot:
- 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%)
Top Stories:
The ongoing correction in the crypto market, led by Bitcoin (BTC), entered its third consecutive day with the asset dropping 6% over the last 24 hours and falling below $93,000. Bitcoin’s rally from earlier in the week, which saw it reach nearly $100,000, has since given way to profit-taking, causing BTC’s weekly gains to shrink from over 10% to less than 1%. Other major tokens, including Solana (SOL), BNB, Cardano (ADA), and Dogecoin (DOGE), have also dropped by as much as 7% during the same period, with the broader CoinDesk 20 index (tracking top cryptocurrencies by market cap) showing a nearly 3% loss.
Analysts suggest that a 10% pullback from the peak is typical in bull markets and have maintained a short-term target of $100,000 for Bitcoin. However, some indicators point to continued correction in BTC’s price, with a potential dip to as low as $90,000. One such indicator is the 25-delta risk reversal, which tracks the volatility premium of out-of-the-money (OTM) calls relative to OTM put options. On Deribit, calls expiring this Friday have become cheaper than puts, resulting in a negative risk reversal, signaling a shift towards protective puts. This suggests that some traders may be bracing for further declines.
Ether Shows Signs of Resurgence:
Ether (ETH) has shown resilience, particularly when compared to Bitcoin’s recent drop. ETH surged to over $3,500 for the first time since June, even as BTC saw a pullback. However, Ether has also been impacted by the market-wide correction, trading 5% lower in the past 24 hours, but still outpacing the broader market, which has lost more than 8%, as seen in the CoinDesk 20 Index (CD20).
Recent data indicates a shift in investor focus, with some capital rotating into smaller, riskier cryptocurrencies. The ETH/BTC ratio, which tracks Ether’s strength relative to Bitcoin, dropped to its lowest point since March 2021 at 0.0318, but has since gained 15%, reaching 0.3660 at press time. This shift reflects increasing optimism for Ethereum, especially as its performance outstrips that of Bitcoin in recent weeks.
Chart of the Day:
Leverage: A Double-Edged Sword
The Defiance Daily Target 2x Long MSTR ETF (MSTX), which seeks to deliver twice the daily performance of MicroStrategy’s stock (MSTR), has taken a significant hit. Over the past three days, MSTX has crashed 41%, from $220 to $112. This comes as MicroStrategy’s stock has also fallen 20%, dropping to $403. The volatility in leveraged ETFs serves as a reminder of the potential risks in such instruments.
Source: TradingView
