The cryptocurrency market has shown signs of stabilization today following a significant sell-off yesterday.
Bitcoin led the recovery during the early US trading hours, climbing back above $87,000. The leading digital currency gained roughly 3% from its overnight lows, while Ethereum’s performance was more subdued with a modest 1.4% increase. Meanwhile, major altcoins like BNB, XRP, and SUI outpaced the broader market by rising between 3% and 6%.
On the macroeconomic front, delayed US employment figures drew attention. November’s data revealed that unemployment rose to 4.6%, marking a four-year peak. Despite this rise in joblessness, market expectations for a Federal Reserve interest rate cut in January remain low—currently priced at just 24% probability.
Although Bitcoin’s early rebound suggests that its recent decline from last week’s high above $94,000 might be temporarily halted, some analysts warn that downside risks still loom large. Senior market analyst Samer Hasn characterized Bitcoin’s ascent from its November low near $80,000 through early December as merely a “corrective peak,” cautioning that prices could soon dip below $80,000 again.
In his latest report on market conditions described as “fragile,” Hasn highlighted derivative data indicating cautious investor behavior: approximately $750 million worth of long positions were liquidated over two days—with Bitcoin futures accounting for about $250 million of those losses. He explained that investors are either trimming their holdings ahead of key economic releases or being forced out due to margin calls; both scenarios contribute to downward pressure on prices. Without any positive macroeconomic catalysts on the horizon, Hasn warned Bitcoin is susceptible to deeper declines and levels under $80K should no longer be viewed as extreme but rather plausible short-term outcomes.
Conversely, David Hernandez—a crypto investment specialist at 21Shares—pointed out an ongoing tug-of-war in the short term between delayed monetary easing policies and Bitcoin’s appeal as a long-term store of value asset. Hernandez noted that selling pressure may intensify briefly as investors recalibrate risk assessments and defend critical support zones for Bitcoin; however he emphasized that over time—in an inflation-challenged environment—the limited supply characteristic continues making Bitcoin an attractive accumulation target for large holders (whales).
This content does not constitute financial advice.