Bitcoin's recent volatility has been a focal point in the cryptocurrency market, with significant events shaping its price trajectory. On November 27, 2024, Bitcoin experienced a sharp decline, slipping below the $95,000 mark, which led to the liquidation of over $409 million in long positions. This downturn followed a period of heightened optimism fueled by MicroStrategy's substantial $5.4 billion Bitcoin purchase. However, the market's over-leveraged state, exacerbated by excessive bullish sentiment post-U.S. presidential elections, contributed to the correction. Additionally, long-term holders have offloaded 728,000 Bitcoin over the past month, marking the largest sell-off since April, further pressuring the market.
The bearish sentiment was compounded by a significant $438 million outflow from Bitcoin ETFs, breaking a streak of five consecutive days of inflows. This shift, along with increased implied volatility towards put options, suggests traders are preparing for potential further declines or a period of consolidation. Despite these short-term challenges, analysts remain optimistic about Bitcoin's long-term prospects, citing on-chain metrics that continue to indicate a bullish market phase. The recent pullback is seen as a typical correction within a broader upward trend, with potential for future gains driven by FOMO and strategic accumulation during market dips.
The GraniteShares 1x Short COIN Daily ETF (CONI) fell to $9.97, down 5.85% as of 3:49 PM ET on November 27th.