Crypto Market Update for November 25, 2024: Market Correction and Key Trends

Starting Monday, First Mover Americas will be rebranded as Crypto Daybook Americas, delivering your daily briefing on the latest in crypto markets. Published at 7 a.m. ET, this new format will offer a concise overview of overnight market movements and what to expect in the coming day—essential reading to start your day.

Market Overview:

• CoinDesk 20 Index: 3,108.77 (-9.55%)
• Bitcoin (BTC): $92,029.63 (-6.72%)
• Ether (ETH): $3,319.02 (-4.95%)
• S&P 500: 5,987.37 (+0.3%)
• Gold: $2,632.36 (+0.57%)
• Nikkei 225: 38,442.00 (-0.87%)

---

Key Developments:

Bitcoin (BTC) continues to face a correction, dropping by 6% in the last 24 hours and falling below the $93,000 mark. The cryptocurrency had come close to the $100,000 milestone on November 22, but the market correction has since slowed its momentum. As a result, Bitcoin’s weekly gains have shrunk to just under 1%, compared to the previous 10% increase. Other major cryptocurrencies like Solana (SOL), BNB, Cardano (ADA), and Dogecoin (DOGE) also experienced declines of up to 7% over the past day. The broader market, as reflected by the CoinDesk 20 Index (CD20), is down nearly 3%.

Analysts view the current price drop as part of a healthy correction, common in bull markets, with Bitcoin potentially falling by as much as 10% from its peak. However, short-term targets remain bullish, with many analysts maintaining a $100,000 price target for BTC. There are indications that the price could dip as low as $90,000, especially with data from the 25-delta risk reversal, which shows a negative shift in market sentiment. This suggests that traders are leaning towards protective measures, like buying put options, in anticipation of further downside.

Ether Shows Strength Despite Market Drop:

Ethereum (ETH) has performed relatively well compared to Bitcoin in the ongoing market correction. The price of Ether surged to over $3,500 for the first time since June before being affected by the broader market decline. Even with a 5% drop in the past 24 hours, Ether has outperformed the general market, which has seen an overall decline of more than 8%. As Bitcoin’s momentum stalls, capital is beginning to rotate into riskier assets, and smaller altcoins have started to attract more attention.

The ETH/BTC trading pair, which measures Ethereum’s relative strength compared to Bitcoin, saw a significant dip earlier this week, hitting its lowest point since March 2021. However, it has since rebounded by 15%, indicating renewed interest in Ethereum as an alternative to Bitcoin in the current market environment.

---

Chart of the Day:

ETF Volatility Hits MicroStrategy Tracker

The Defiance Daily Target 2x Long MSTR ETF (MSTX), which amplifies the daily performance of MicroStrategy’s stock, has seen significant volatility, plunging 41% over the past three days. The ETF, which tracks MicroStrategy’s stock price, dropped from $220 to $112 amid a 20% decrease in MicroStrategy’s stock, which is now trading at $403. This sharp decline underscores the risk associated with leveraged products, especially those tied to volatile assets like Bitcoin.

Source: TradingView