The leading cryptocurrency Bitcoin (BTC) failed to continue the recovery it experienced in November and started December with a decline.
At this point, BTC rapidly declined from around $91,000 to $83,000 due to weak liquidity, concerns about Japan’s macro economy, and concerns about possible MSCI methodology changes.
Experts said the market is currently very sensitive and cannot handle even the slightest stress in the current environment.
Farzam Ehsani, CEO of virtual currency exchange VALR, said in an interview with Coindex that Bitcoin’s drop below $90,000 was the result of a combination of weak market structure and poor liquidity conditions observed over the weekend.
Ehsani noted that some investors are focused on a different issue, awaiting MSCI’s decision on whether to exclude companies whose balance sheets are largely focused on cryptocurrencies from global indexes.
At the moment, decisions are awaited regarding the exclusion of companies from MSCI, including Strategy, Marathon, Riot, Metaplanet, and American Bitcoin.
Stating that this situation will have a negative impact on companies, the famous CEO said, “The rule change will automatically trigger a review of the shares of these companies, potentially leading to a forced sale of shares in these companies, which could trigger significant capital flows.”
In conclusion, Ehsani said that Bitcoin could fall to the $60,000 level due to continued weakness, saying:
“If the market continues to decline, Bitcoin could test the $60,000 to $65,000 range. At these levels, large institutional investors, including Strategy’s potential rivals, may be interested in purchasing large amounts of Bitcoin.”
*This is not investment advice.
