Bitcoin price sinks further as Evergrande defaults on US-dollar debt
In the last 30 days, Bitcoin has registered substantial losses of around 28%.
- The Bitcoin-Ethereum pair continues to hover around its 4-year high value, suggesting an increased decoupling between the two assets.
- Bitcoin’s market dominance index (DI) has slipped from 40% to 38% over the last month alone.
- Since November 1, the total market capitalization of the crypto industry has dipped from $3 trillion to $2.39 trillion.
Bitcoin (BTC), the world’s largest cryptocurrency by total market capitalization, continues to exhibit immense financial turbulence after accruing solid support around the $48K–$49K range. At press time, BTC is trading at a price point of $48,920.
The flagship crypto’s ongoing dip may have been spurred by news of Chinese property development firm Evergrande defaulting on its massive US-dollar debt. That said, analysts are still quite confident about Bitcoin’s near-term future, with many pundits noting that the asset’s current price action is closely mirroring its performance witnessed back in 2013 and 2017 — two periods when BTC forged a remarkable run, taking the currency’s price to relative highs.
However, with approximately $2.5 billion liquidated from the crypto sector over the last seven days, it seems as though the near future could remain rough on investors. With a sizeable $1 billion worth of Bitcoin options set to expire on Friday, there are clear indications that bears may control the market once again.
What lies ahead for Bitcoin?
Even as bearish pressure mounts, CEO of fintech giant Microstrategy Michael Saylor revealed that his firm had added another 1,434 Bitcoin to its coffers — between November 29 and December 8 — at an average value of around $57,477. As a result, the company owns a total of 122,478 BTC, with its holdings now lying at $5.9 billion and its crypto gains standing at a handsome $2.2 billion.
Also, American asset manager WisdomTree noted that it had made some amendments to its proposed exchange-traded fund filing by naming a major US banking institution — the US Bank National Association — as a custodian for shares of its Bitcoin trust in hopes of getting its offering approved by the Securities and Exchange Commission at the earliest.
Disclosure: The author owns a range of cryptocurrencies at the time of writing