Are We Witnessing the Final Bow of the Bull Run Era?
Hold onto your hats, crypto enthusiasts! After weeks of exhilarating rallies and jaw-dropping gains, the crypto landscape has taken a nosedive, with Bitcoin plummeting to $98.8K today. Just a few days ago, this titan hit an astonishing all-time high (ATH) of $103.9K, fueled by the electrifying news of Donald Trump’s victory in the recent US elections on November 6. But alas, the party came to a halt as Bitcoin struggled to break through a consolidation phase, casting shadows of doubt over the sustainability of this bullish run.
As Bitcoin falters, major altcoins are feeling the heat too, losing their hard-won gains. Yet, not all is lost! Tokens like PEPE, X Empire, and a select few others are defying the odds, with PEPE hitting an ATH and X Empire soaring 47% this week. Talk about resilience!
What’s Behind Today’s Crypto Market Crash?
The crypto market has been on fire, but it seems the heat was too much to handle. As Bitcoin approached the coveted $100K mark after its recent ATH, selling pressure surged, particularly after the Bhutan government dumped $40 million in Bitcoin. Coinglass liquidation data highlights a chaotic scene, with 204,384 traders getting liquidated for a staggering $509.48 million, signaling high volatility. As December approaches, fears of further declines loom large, especially with 39,960 Bitcoin options contracts set to expire on December 27, leaving traders uneasy.
Interestingly, altcoins aren’t escaping unscathed. Ethereum has dropped 3% in the past 24 hours, partially due to Justin Sun’s disposal of $119 million in ETH. This follows Ethereum’s significant milestone of reaching $4K earlier. The increased selling pressure across altcoins has only compounded the market’s woes. Furthermore, the Cardano Foundation X account was compromised, adding to the prevailing negativity.
But let’s not call it quits just yet! Crypto analysts had already predicted a potential consolidation phase due to escalating selling pressures following the steep gains. One analyst pointed out that although reaching $100K was a monumental achievement, the lack of fresh momentum could signal the end of this rally. Still, there’s a glimmer of hope for a modest resurgence in the near future.
Another analyst forecasts that the upcoming inauguration of Donald Trump could trigger further market fluctuations.
Agree. Dream the post-Election dream now, shakedown after ~Inauguration makes the most sense as reality can never match the dream. But that shakedown won’t be the end, though it will scare paper hands into believing it is. https://t.co/9ucm86WH2H
— Chris Burniske (@cburniske) December 6, 2024
Is This the End of the Bull Run?
Despite Bitcoin’s downward spiral and the overall market crash, most analysts refuse to declare the end of the bull run. Optimism abounds for a further rally, especially as we edge closer to 2025. Additionally, some experts view this as the dawn of a potential altcoin season as the altcoin market begins to take center stage.
What’s more, with Bitcoin’s dominance waning in recent days, many believe this reflects a shift in strength toward altcoins. The Altcoin Season index, currently at 73, while down from an impressive 86 at the month’s kickoff, suggests a brief entry into altcoin season.
For the moment, this market downturn seems to be the anticipated pullback and shouldn’t be mistaken for the end of the bull run just yet. However, the upcoming days could pivot the market dramatically as the FED meeting, along with the CPI, PPI, and import/export price index reports, could drive the market in any direction. Amidst the high liquidation and the market crash, savvy investors might find this an opportune moment to scoop up crypto at lower prices, setting the stage for a rebound as new buyers enter the fray.
