Bitcoin has reversed gains made earlier in Asia, disrupting nascent recoveries in major alternative cryptocurrencies.
The leading cryptocurrency by market value fell below $88,000, after surpassing $90,000, according to CoinDesk data. Top altcoins including ether Solana And also retraced their dances. The CoinDesk 20 Index (CD20) is back at 2,726, roughly where it was in early Asia before reaching 2,789.
This decline is consistent with the weakness of stock index futures. At the time of writing, futures tied to Wall Street’s tech-heavy Nasdaq 100 index were trading down 0.5% on the day, indicating a cautious start to trading.
According to Wintermute, BTC and the Nasdaq share a strong positive correlation that becomes more pronounced during Nasdaq downtrends.
The pullback led traders to slightly reduce their leveraged bets. Data from Coinglass shows that cumulative open interest for futures contracts listed around the world decreased to around 533,000 BTC, compared to 540,000 BTC seen earlier in the day. Open interest increased from 524,000 BTC as the price of Bitcoin increased to $90,000.
The cryptocurrency has recently tended to underperform during U.S. business hours, according to Laser Digital.
“An interesting trend to note is the net underperformance during US time (BTC and ETH down over 3% on US time). [last week] offset by strength during Asian trading hours) most likely driven by selling pressure from the year-end tax harvest flow, as crypto has been a significant underperformer among global assets this year,” Laser Digital analysts wrote in an analysis note on Monday.
John Glover, Elliott wave expert and chief investment officer at crypto lender Ledn, signaled a bullish outlook.
“The Bitcoin price chart looks very promising for higher prices in the future, but less certainty in the near term. I continue to look for the market to trade sideways or slightly lower in the coming weeks/months, and am looking to add long positions between $71,000 and $84,000,” Glover told CoinDesk in an email.
