On November 21, Bitcoin experienced a fresh low after several months, and even though it had a pleasant weekend, the cryptocurrency began December on a bleak note. Despite the confirmation of an interest rate cut, investors are showing weak risk appetite, and today marks the reopening of U.S. markets. The question arises: which cryptocurrencies have performed the worst?
Bitcoin’s Decline
We previously discussed the potential testing of the $88,000 support level, but the speed of Bitcoin’s decline was unexpected. The failure to break the $93,000 resistance, coinciding with statements from Trump, accelerated the sell-off. The monthly and weekly closing candles compounded the negative start for cryptocurrencies in December.
As BTC dipped below $85,000, it awaited the opening of U.S. markets while numerous important economic indicators, including the PCE, were expected to be released this week leading up to the December 10 interest rate decision. Although the interest rate cut expectation was confirmed, investors’ year-end trend of reducing risks resulted in closures below the $88,000 support level.
Should BTC maintain a position below $84,704 significantly, a new low reaching $79,400 could occur. Analysts, including Roman Trading, anticipated BTC would soon form a higher peak near $100,000. However, this expectation did not materialize.
The hawkish remarks from the Bank of Japan lay the groundwork for December’s negativity. The probability of a rate hike by Japan in December is increasing. The Bank of Japan’s President, Ueda, provided a clear message about raising interest rates, with Japan’s two-year bond yield rising to its highest since 2008. We will see how seriously the Fed considers the potential carry trade collapse in the upcoming Wednesday session.
Worst Performing Cryptocurrencies
U.S. stock markets opened with losses, and if they do not reverse later, BTC losses could expand. Powell is set to make an announcement tomorrow, and the ongoing negativity is disconcerting. We had forewarned about Vitalik Buterin’s cautioning, which suggested an acceleration in the sale of ZEC Coin. As anticipated, ZEC Coin accounted for the worst performance among the top 100 cryptocurrencies in the past 24 hours, with a 22% loss. If privacy debates continue, losses may escalate.
TIA, PUMP, SPX, and AERO, previously leading in rises, are now also leading in decline. These have continued to suffer double-digit losses. Major altcoins like ADA, DOGE, and AVAX saw losses nearing 10%, and if BTC falls further with the stock market open, more profound lows might be tested. As the year closes, investors’ patience continues to be strained.