Today’s Crypto Market, December 1st: Investors Fear Bitcoin Could Drop to $40,000

On the evening of December 1st, the cryptocurrency market experienced a sharp downturn. Data from the OKX exchange revealed that Bitcoin plummeted nearly 7% in the past 24 hours, settling at $85,997.

Other major cryptocurrencies also saw significant declines. Ethereum dropped over 6% to $2,820; BNB and Solana both fell more than 7%, reaching $822 and $127, respectively; while XRP suffered the steepest fall, losing nearly 8% to $2.

According to Cointelegraph, Bitcoin started December with a 5% drop, pulling its price down to the $85,000 – $86,000 range and raising concerns about further market weakness.

Over $600 million in trading positions were liquidated in a single day, as thin liquidity exacerbated price volatility.

Many traders warn that if Bitcoin fails to reclaim the $88,000 – $89,000 level soon, it could revisit November’s lows or even retreat to $50,000.

More pessimistic views suggest a potential drop below $40,000. Conversely, optimistic analysts predict Bitcoin could consolidate between $80,000 and $99,000, but it needs to surpass $99,800 to confirm an upward trend.

November marked Bitcoin’s worst monthly performance since 2018, with a nearly 18% decline. The total drop in Q4 now exceeds 24%, mirroring a similar sharp decline from seven years ago.

International pressures have also contributed to market instability. Japanese bond yields reached their highest since 2008, raising speculation that the country may raise interest rates, contrary to the global trend of central banks maintaining or lowering rates.

Despite these challenges, some positive signs have emerged. The Bitcoin price premium on U.S. exchanges has turned positive, indicating improved buying demand in this key market.

Additionally, the amount of capital “waiting to buy” on exchanges has hit record highs, potentially fueling a recovery once market sentiment stabilizes.