Bitcoin was off to a good start on Monday, breaking above $100k and peaking at $102k. It led the crypto market as recovery continued.
At the time of writing, the apex coin prints a red candle. A few hours ago, it experienced a massive decline, dropping from $102,760 to a low of $96,130. Down by over 5%, BTC has yet to show any signs of recovery. It trades close to its low as the bulls failed to start buybacks.
The decline is surprising as many anticipated more price increases following the apex coin’s surge above $102k. However, the latest dip erased the previous day’s gains.
Derivatives registered another significant wipeout. Over the last 24 hours, total liquidation exceeded $500 million, with the bulls bearing over 0%. Traders lost over $100 million trading the BTC.
Bitcoin l d the market as the selloffs spread to other assets. The global cryptocurrency market cap is down over 7%, dipping to $3.38 trillion. Trading volume reduced by more than 8% over the last 24 hours. This may be a contributing factor to the latest declines.
Why is Bitcoin Down?
The latest decline may be in response to the latest United States Job Openings and Labor Turnover (JOLT) release. In November, job openings surged by 4.8%, with business services leading the pack. Hirings increased by 3%, showing a significant improvement in the labor market.
While these increases are positive, the fears of the impending CPI report may fuel the ongoing downtrends. Recall that the Federal Reserve predicted possible inflation in January, and many anticipate a negative consumer price index.
Data from CryptoQuant shows a massive drop in buying pressure. However, the Asian market is seeing enormous selling pressure as selloffs significantly increase in the region. The Korea premium suggests that the bearish sentiment surged 20x.
US traders maintain almost the same sentiment as the previous day. However, they show notably weak buying pressure.
