Hassan Maishera
TL;DR
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BTC has lost 7% of its value in the last 24 hours and temporarily dropped below $86k.
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The market continues to bleed, with the crypto market losing over $120 billion in the last 24 hours.
BTC Dips Below $86k Amid Retail Selloff
The cryptocurrency market has been experiencing a bearish month since the start of November, with prices constantly in the red. Bitcoin, the leading cryptocurrency by market cap, has dropped below the $86k level, hitting a six-month low in the process.
It has slightly bounced back and is now trading above $86,200 per coin. According to analysts at JPMorgan, the bearish performance comes amid retail selloff and outflow from spot Bitcoin ETFs.
JPMorgan analysts led by managing director Nikolaos Panigirtzoglou stated that,
"While crypto native investors were responsible for the crypto market correction in October via heavy deleveraging in perpetual futures, this previous deleveraging in perpetual futures appears to have stabilised in November. Instead, it has been non-crypto investors, mostly retail investors who typically use spot bitcoin and Ethereum ETFs to invest in the crypto market, that appear to have been mostly responsible for the continuation of the crypto market correction in November."
The analysts added that roughly $4 billion has been withdrawn from spot Bitcoin and ETH ETFs so far this month, already exceeding the record outflows of February. They added that this is in stark contrast to retail inflows into equities. Retail investors have already put about $96 billion into equity ETFs in November.
Altcoins Continue to Bleed
The selloff also affected altcoins, with most of them currently in the red. Ether, the leading altcoin by market cap, is down 7.5% and is currently trading around $2,800 per coin.
Ripple’s XRP has declined below the $2 psychological level, while BNB has lost 36% of its value since hitting a new all-time high a month ago. Thanks to the ongoing bearish market performance, the total cryptocurrency market cap has dropped to $2.95 trillion, down $120 billion in the last 24 hours.
