Bitcoin Sheds Over $1 Trillion in Market Cap in a Month—Analysts Say Bottom May Be Near

(Seoul=Yonhap Infomax) Ji Yeon Kim – Bitcoin’s market capitalization has plunged by more than $1 trillion in the past month, according to recent data.

On the 20th (local time), Business Insider reported that Bitcoin’s market cap fell below $3 trillion overnight. This marks a drop of over $1 trillion from early October, when the figure stood at $4.2 trillion.

According to the Yonhap Infomax cryptocurrency dashboard (screen number 2550), as of 19:32 Eastern Time, Bitcoin was trading at $87,104, down approximately 19.02% from a month ago and about 30% below its October 6 peak of $126,000.

Currently, Bitcoin is also down more than 5% year-to-date.

Bitcoin has remained under pressure since October 10, when the largest liquidation event in its history occurred. At that time, $19 billion in leveraged positions were liquidated, with some estimates putting the figure as high as $30 billion.

Analysts warn that even Bitcoin bulls are being tested, and the market could remain frozen until a new catalyst emerges.

Crypto asset manager 21Shares noted in a report, “Wealthy Bitcoin investors are selling their coins, and outflows are being recorded from exchange-traded funds (ETFs) as well.”

The report added, “Long-term investors sold about 42,000 Bitcoins (worth roughly $4 billion) this month, and spot Bitcoin ETFs have seen outflows for three consecutive weeks.”

On the previous day alone, Bitcoin ETFs saw $866 million in redemptions.

The decline in Bitcoin is attributed to a combination of technical factors and macroeconomic pressures.

Forced liquidations and thin market liquidity have fueled continued price volatility, while expectations that the Federal Reserve may delay rate cuts are adding downward pressure on risk assets such as Bitcoin.

Satraj Bambra, CEO of hybrid exchange Rails, commented, “Losses have continued to mount for investors since the October crash,” describing the market as highly unstable.

He added, “We are likely near the bottom now, and if market sentiment shifts, a reflexive rebound could occur.”

However, he cautioned, “If strong buying does not materialize after any rebound, there is a high possibility of further declines. The current market is unstable, and the direction will depend on the actions of bullish investors.”

jykim@yna.co.kr

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