Bitcoin fell by nearly 5% on Monday, dropping below $90,000 again. The world’s largest crypto asset recorded its worst monthly performance since the sharp crash of 2021, with global risk aversion accelerating the exit from both equities and digital assets.
Bitcoin, which lost 6.1% during the day, was trading at $86,754 as of 12:42 PM Turkish time. Thus, the cryptocurrency recorded one of its sharpest daily drops in the last month, approaching the eight-month low of $80,553 seen last month.
Bitcoin lost more than $18,000 in November alone, experiencing its largest nominal drop since May 2021. Bitcoin and Risk Appetite Bitcoin and Risk Appetite According to analysts, Bitcoin’s current high correlation with stocks is a more decisive indicator. XTB Research Director Kathleen Brooks commented, “Bitcoin is currently acting as a leading indicator of overall risk appetite, and this decline is giving a negative signal for stock markets at the beginning of the month.” Brooks noted that the sharp drop in volatility last week and the VIX index falling below its 12-month average may have made investors uneasy about the year-end outlook. Ethereum also fell by 6% on Monday, dropping to $2,840. Ether fell by approximately 22% in November, recording its sharpest monthly decline since February.Negative Factors Increasing Pressure
Jefferies strategist Mohit Kumar stated that accumulating anti-crypto factors as the weekend approached were putting additional pressure on Bitcoin. S&P Global’s downgrade of Tether, the world’s largest stablecoin, due to the increase in high-risk assets in its reserves and “ongoing transparency gaps,” increased anxiety in the market. Tether, however, stated that it “definitely disagrees” with this assessment. […] […] […] On the other hand, Phong Le, CEO of Strategy, the world’s largest institutional Bitcoin holder, said that they might consider selling Bitcoin if the company’s “mNAV” indicator falls below 1. This ratio is currently at 1.19.] […] […] […] […] […] […] Crypto-focused company shares are also under pressure. Shares of Strategy, Coinbase, and mining companies Riot Platforms and MARA Holdings retreated by 3-4% in pre-US trading. The total crypto market has lost over $1 trillion since hitting a record high of $4.3 trillion. Spot Bitcoin-backed ETFs traded on US exchanges saw a record outflow of $3.43 billion in November. Net inflows into these products have reached $21 billion year-to-date.
