Bitcoin defends $90,000... Drops due to profit-taking sell-offs

Source: DecenterKorea Original Title: Bitcoin’s $90,000 Defense… Drops Amid Profit-Taking [Decenter Market Update] Original Link: https://www.decenter.kr/NewsView/2H1M120D9Q/GZ03

Major cryptocurrencies, including Bitcoin, turned bearish within a day. This appears to be influenced by profit-taking after the previous day’s surge.

According to global crypto market tracker CoinMarketCap, as of 8:33 AM on the 5th, Bitcoin was trading at $92,270.68, down 1.40% from 24 hours earlier. Ethereum(ETH) was also trading down 1.36% at $3,139.81. XRP(XRP) was down 4.64% at $2.09, and Solana(SOL) was down 4.03% at $139.09.

The domestic market is mixed. On local crypto exchanges, BTC rose 0.65% from the previous day to 137,621,000 KRW. ETH was up 0.15% at 4,687,000 KRW, while XRP was down 0.76% at 3,132 KRW.

The bearish trend today is due to profit-taking following yesterday’s surge. Bitcoin previously broke through $94,000 again as bargain hunters entered the market.

However, some analysts note there are still many bullish factors. News that the Czech central bank purchased less than $1 million worth of Bitcoin as an experiment is being evaluated as “an event that reminds us even the most conservative institutions—the central banks—may consider including Bitcoin in their foreign exchange reserves.” This is expected to greatly contribute to improving Bitcoin’s image.

A shift in perception among global asset managers is also positive. Institutions that previously did not support spot Bitcoin ETF trading have recently decided to allow it on their platforms. This is being analyzed as “a declaration of surrender by conservative institutions,” indicating “Bitcoin’s significantly increased status in the investment landscape.”

Political and policy changes in the US are also providing momentum. The upcoming passage early next year of the market structure bill for virtual assets(CLARITY Act) and the introduction of the “Strategic Bitcoin Reserve Bill,” which would allow taxes to be paid and stored in Bitcoin, are being cited as key bullish drivers.

There is also a potential positive in that a candidate mentioned as the next Federal Reserve(Fed) chair could lead aggressive rate cuts. Wall Street is confident that the FOMC will cut the base rate by 0.25 percentage points on the 9th-10th. According to the Chicago Mercantile Exchange(CME) FedWatch, the market is pricing in an 87% chance of a rate cut.

Crypto investor sentiment remains in a state of “fear.” The Crypto Fear & Greed Index from a crypto data analytics firm is down 2 points from the previous day to 26 points. The closer the index is to 0, the more subdued investor sentiment; closer to 100, the more overheated the market.