Black Friday bitcoin and crypto market are all red

Black Friday bitcoin and crypto market are all red. Over the past day, BTC has dropped rapidly from $ 59,000 to around $ 54,000. The crypto market also largely declined. Even so, the adjustment rate for the top 10 coins fell from 8% to over 10%. Smaller altcoins had a few easy winners, the rest fell, but the percentage of declines wasn’t too high.

Not only the crypto market, but also US, European and Asian stocks were in the red. Gold rose slightly, silver fell 1.66%.

Markets fell as news of a new variant of Covid made many governments nervous. Before the new variant information, Europe restricted the entry of some countries in Africa. Investors returned to worry about the possible impact the epidemic could have on the economy.

Concerns about the epidemic led to a massive asset sell-off in March 2020 when the first major Covid-19 outbreak hit. This time around, general investor sentiment stayed the same, but the level of asset sell-offs was lower.

During tough economic times, the US government kept printing money to penetrate the market and keep interest rates low. And so far, inflation has really come in significantly and is still increasing. The speed of circulation of money sinks to a very low level.

The speed of money is important in measuring the speed at which money is circulated and used to purchase goods and services. It is used to help economists and investors assess the health and vitality of the economy. High remittance rates are often associated with a healthy, developed economy, and vice versa.

The low speed of money shows that a large amount of money has not really entered the market and has not moved much. So inflation should continue to rise.

Another reason Bitcoin’s price is falling is more than 3 billion BTC options, which expire on November 26th. During this bitcoin options expiration period, a BTC price of $ 58,000 or more will cause most participants to lose money. For BTC below $ 56,000, the advantage is the option to buy an additional $ 365 million (put). In the last few months as Bitcoin options matured, the price was often pushed to the dominant side. The results in November are similar.

Before Bitcoin fell when the price was at $ 59,000, the BTC win rate also rose to 89%. BTC’s soaring price has also created profit-taking pressure.

The falling BTC price also resulted in a large number of futures orders being liquidated. In general, however, the volume of futures orders on the stock exchanges is still high.

For the past four days, BTC has continuously had a larger number of withdrawals from the exchange than the amount deposited on the exchange.

In the Sell BTC section, the SOPR of short-term investors shows that they often sell (STH-SOPR below 1-blue line) and accept losses. Many short-term investors have weaker hands when the market corrects.

In contrast, long-term investors show no signs of panic selling at a loss. And the LTH-SOPR is all above level 1 (blue line, lower picture).

Adjusted for BTC, the BTC capitalization was still 41%. Not much has changed compared to the previous time. When short-term investors are afraid to sell altcoins and switch to BTC, the BTC capitalization rate often increases. So, with BTC capitalization nearly unchanged, investor concerns are temporary in the short term.

In the short term, the BTC price exhibits great volatility. But viewed over the long term in the development process, the price of BTC is still growing over the years. Long-term investors see this clearly and will be more confident in the market if the price corrects.