Crypto Market Update for November 25, 2024: Bitcoin Faces Pullback, Ether Shows Resilience Amid Correction
Starting Monday, First Mover Americas will evolve into Crypto Daybook Americas, a new morning briefing for your crypto market insights. Published at 7 a.m. ET, it will keep you updated on overnight price moves and key trends to watch for in the coming day.
Market 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%)
Main Market Developments:
Bitcoin (BTC) has corrected by 6% in the last 24 hours, dipping below $93,000 after almost hitting the $100,000 mark on November 22. The pullback has reduced Bitcoin’s weekly gains from over 10% to less than 1%. Alongside Bitcoin, several major altcoins like Solana (SOL), BNB, Cardano (ADA), and Dogecoin (DOGE) have also experienced declines of up to 7%. The overall CoinDesk 20 Index (CD20), tracking the top 20 tokens, is down nearly 3%.
Although Bitcoin’s price has dropped significantly, such corrections are typical in bull markets. Historically, Bitcoin often experiences price retracements of 20-30%, which help shake out leveraged positions. Despite this short-term pullback, analysts continue to maintain a bullish outlook for Bitcoin, with a target of $100,000 still in place.
Indicators Pointing to Further Decline:
One key indicator, the 25-delta risk reversal, is showing signs of further downside risk. This metric tracks the volatility premium of out-of-the-money calls compared to puts, providing insight into market sentiment. According to Amberdata, for the first time in over a month, puts have become more expensive than calls, signaling a shift toward protective hedging in anticipation of more price weakness. This trend could suggest that sophisticated traders are positioning for continued price declines.
Ether’s Resilience in the Market Correction:
Ether (ETH) has outperformed Bitcoin during this market correction. On Monday, ETH surged above $3,500, marking its highest price since June, while Bitcoin was on the decline. While Ether has also seen a 5% drop in the past 24 hours, it remains more resilient than the broader market, which is down by more than 8%, according to the CoinDesk 20 Index (CD20). Investors appear to be rotating their capital into Ethereum and other altcoins as Bitcoin’s rally begins to lose momentum.
The ETH/BTC ratio, which measures the strength of Ether relative to Bitcoin, had dropped sharply earlier in the week, reaching its lowest point since March 2021. However, Ether has seen a 15% rebound, now trading at a ratio of 0.3660, reflecting renewed interest in Ethereum.
Chart of the Day:
Volatility Strikes MicroStrategy ETF:
The Defiance Daily Target 2x Long MSTR ETF (MSTX), designed to double the daily performance of MicroStrategy’s stock, has plunged 41% in just three days. The ETF fell from $220 to $112 as MicroStrategy’s stock dropped by 20%, now trading at $403. This sharp drop underscores the risks associated with leveraged ETFs, especially those tied to Bitcoin-heavy companies like MicroStrategy.
Source: TradingView
