Bitcoin experienced a significant drop below the $95,000 threshold on December 8, 2024, as it fell by 3.5% within a 24-hour period, settling at around $94,800. This decline continues a trend that began over the weekend, marking a noticeable downturn for the largest cryptocurrency by market capitalization.
In the same timeframe, Ethereum also faced a notable decrease, sliding 5.2% to approximately $3,750. Other major cryptocurrencies displayed a mixed performance, with XRP declining 2.8% and Solana dropping 4.1%. Conversely, Cardano saw a slight uptick of 1.3%, while BNB remained relatively stable, down just 0.2%.
The overall cryptocurrency market capitalization witnessed a substantial decrease, shrinking by about $120 billion in just one day. Trading volumes surged by 15%, indicating a heightened response from investors to the prevailing price movements.
In traditional markets, the sentiment mirrored that of the crypto sector as stock indices opened lower. The S&P 500 index fell 0.4%, while the Nasdaq Composite dropped 0.6% during early trading. The Dow Jones Industrial Average also experienced a decline of 0.3%. Technology stocks bore the brunt of the losses, with several major companies trading in the negative.
Meanwhile, Treasury yields experienced an uptick, with the yield on the 10-year Treasury note climbing to 4.18%, up from 4.15% the day prior. In contrast, gold prices rose by 0.8%, reaching $2,665 per ounce as investors sought safe-haven assets amidst the market volatility. Oil prices remained relatively unchanged, with West Texas Intermediate crude hovering around $68 per barrel and Brent crude at approximately $72 per barrel.
The trading activity in the crypto exchanges reflected the current market dynamics, with Binance reporting over $45 billion in trading volume across all pairs in a 24-hour span. Coinbase also noted a rise in retail trading activity, with volumes up by 20% from the previous day, primarily driven by its Bitcoin trading pair.
Futures markets indicated increased short interest as traders positioned themselves for a potential further decline. The open interest for Bitcoin futures on the CME reached $12 billion. The Bitcoin fear and greed index shifted into fear territory at 42, a drop from 58 just three days earlier.
The stablecoin market capitalization remained stable at approximately $145 billion, with USDT and USDC continuing to hold their positions as the leading stablecoins by market cap.
