Correction in Bitcoin Pushes Prices Below $93 Thousand

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%

The crypto market correction led by Bitcoin (BTC) continued for a third day, with the asset losing another 3.5 percent in the last 24 hours, falling to $94,000 a week after coming so close to the $100,000 level for the first time. BTC reduced its weekly gains from 10 percent to 3 percent with profit taking following the already expected pullback. Data shows major tokens are following the decline, with Solana’s SOL, BNB, Cardano’s ADA, and dogecoin (DOGE) dropping as much as 7 percent in the last 24 hours. CoinDesk 20 (CD20), which tracks the largest tokens by market cap, is losing about 3%.

Hopes that Bitcoin (BTC) would break above $100,000 suffered a major blow as prices retreated to $94,500 overnight. Key indicators indicate that the cryptocurrency could decline to levels below $90,000. The first indicator is the 25-delta risk reversal. The indicator measures the volatility premium of calls used to bet on price rallies relative to OTM put options that offer downside protection. According to data platform Amberdata, call options expiring this Friday on Deribit are trading at a relatively cheaper valuation than puts, resulting in a reversal of downside risk. The negative reading, recorded for the first time in nearly a month, indicates a bias for hedging options.

Ether is showing signs of revival after a prolonged downtrend compared to bitcoin. While ETH rose above $3,500 yesterday for the first time since June, BTC began to decline from its recent peaks. Although Ether lost 5% in the last 24 hours, it outperformed the CoinDesk 20 Index (CD20), which fell more than 8%. Investors began shifting their capital into smaller, riskier altcoins after bitcoin’s rise, which had risen almost vertically since Donald Trump’s election victory, stalled. The ETH/BTC ratio, which measures ether’s strength against bitcoin, fell to 0.0318 on Thursday, its lowest reading since March 2021. The indicator has increased by 15% since then, reaching 0.3660 at the time of writing.

The Defiance Daily Target 2x Long MSTR ETF, traded on Nasdaq under the ticker symbol MSTX, fell 41% in three days, falling from $220 to $112. The ETF aims to deliver twice the daily performance of shares of bitcoin holder MicroStrategy. MSTR, on the other hand, decreased by 20% to $ 403. Source: TradingView