Bitcoin BTC$87,884.53 It reversed earlier gains in Asia and punctured an early recovery rally for major alternative cryptocurrencies.
According to data from CoinDesk, major cryptocurrencies by market capitalization have fallen from above $90,000 to below $88,000. Major altcoins XRP$1.9003,ether Ethereum$3,017.33Solana sol$127.81 and doge$0.1269 I looked back on their steps. The CoinDesk 20 Index (CD20) returned to 2,726, about the same as its early Asian level before surging to 2,789.
This decline coincides with weakness in stock index futures. At the time of writing, futures tied to Wall Street’s tech-heavy Nasdaq 100 index were trading 0.5% lower on the day, indicating a cautious start.
According to Wintermute, there is a strong positive correlation between BTC and the Nasdaq, which becomes more pronounced when the Nasdaq is in a downtrend.
In response to the pullback, traders scaled back some of their leveraged bets. According to data from Coinglass, cumulative open interest in listed futures worldwide decreased to approximately 533,000 BTC from 540,000 BTC seen earlier today. As Bitcoin price rose to $90,000, open interest jumped from 524,000 BTC.
According to Laser Digital, cryptocurrencies have recently tended to underperform during US time.
“An interesting trend to note is the clear underperformance in US time zones (Bitcoin and Ethereum both fell more than 3% compared to US time (last week), offset by strength in Asian time zones), likely driven by selling pressure from year-end tax collection flows, as cryptocurrencies have significantly underperformed among global assets this year,” Laser Digital analysts said in an analytical note on Monday.
John Glover, Elliott Wave expert and chief investment officer at crypto financial firm Redon, offered a bullish outlook.
“Bitcoin’s price chart looks very promising for future price gains, but there is less certainty in the short term. I continue to look for the market to move sideways to slightly down in the coming weeks and months, and aim to increase my longs between $71,000 and $84,000,” Glover told CoinDesk in an email.
