The price of Bitcoin (BTC) fell below $47,000 on December 4, wiping all the gains made in October as the flagship digital asset crashed to two-month lows due to increased volatility.
BTC unexpectedly fell below $47,000, dropping roughly 16% in the last 24 hours. This is the most significant one-day loss in Bitcoin price since May 15, when the cryptocurrency briefly crashed under $33,000.
In particular, the market price of Bitcoin plummeted from a week-long support level of $57,206 to $42,268 before returning to its present trading price at $47,846 down, 15.43% in the last 24 hours and 13.30% over the previous seven days.
This means that effectively the 2-month-long bull market in Bitcoin from September 29, during which BTC rose by more than 63% to reach an all-time high of $67,602 on November 8, has been canceled out.
Crypto analysts view
With the Bitcoin price hovering around $47,000, cryptocurrency traders and analysts are deliberating where might be the bottom for the cryptocurrency.
On the one hand, the price appears to be recovering once again, with the most prominent buy the dip interest increase in three months driving the resurgence, according to behavior analytics platform Santiment, which noted:
“Bitcoin fell all the way to $43.5k about an hour ago, along with Ethereum dropping to $3.54k. However, prices are bouncing with the largest #buythedip interest spike in 3 months. Renewed covid concerns among larger stakeholders should tell the story.”
Meanwhile, pseudonymous crypto analyst Plan B has highlighted the larger picture zooming out on the entire perspective showing that a significant drop preceded each Bitcoin climb.
Elsewhere, President of El Salvador Nayib Bukele wasn’t phased as he tweeted out:
“El Salvador just bought the dip! 150 coins at an average USD price of ~$48,670.”
Global crypto market
It’s worth mentioning that all cryptocurrencies apart from stablecoins in the top 100 by market cap are trading in the red today, with many having lost as much as 20% of their value.
Indeed, the whole cryptocurrency market cap fell from $2.612 to $2.217 trillion, as almost $400 billion was wiped from the market cap in just a single day. In the previous 24 hours, it has lost over 14.75% percent of its value, according to statistics from CoinMarketCap data at the time of publication.
Over the last 24 hours, market volume was $200.48 billion, making a 76.64% increase. In 24 hours, the total volume in DeFi is currently $25.25 billion, 12.01%, whereas stablecoins is now $161.90 billion, which is 80.79% of the total crypto market 24-hour volume.
Notably, stablecoins have increased dramatically and represented four-fifths of the market volume as investors look to reduce volatility during this period.
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