Cryptocurrencies began another month in the red after Bitcoin dropped more than 5% during European trading on December 1, falling below €75,000.
Cryptocurrencies began another month in the red after Bitcoin dropped more than 5% during European trading on December 1, falling below €75,000, reported Euronews.
After reaching an all-time high of around €110,000 in early October, Bitcoin entered a steep and prolonged decline, with the market experiencing significant liquidations and mass sell-offs. In November, Bitcoin lost over 16% of its value, at times dipping toward €74,000.
Other leading cryptocurrencies also saw significant losses on December 1, with Ethereum and Solana falling more than 5%, continuing the downward trend that began in October.
Bitcoin showed brief signs of stabilization last month, although these recoveries proved short-lived, and prices began to drop again. In recent weeks, other stocks have also weakened as investors adopted a more cautious approach, while inflows into Bitcoin exchange-traded funds (ETFs) remain low.
An ETF is a basket of assets — such as stocks, bonds, commodities, or even Bitcoin — bundled into a single product. Instead of buying each asset individually, you buy one share of the ETF, which gives you exposure to all the assets the fund holds.
Investors often sell ETF shares when the price of one or more of its underlying assets falls, which affects the value of the entire fund.
The world’s largest cryptocurrency has been dragged down by a combination of global market uncertainty and declining investor interest, as traders shunned riskier assets amid weaker economic signals and fading hopes for early interest rate cuts by central banks such as the U.S. Federal Reserve and the Bank of England.
Experts also link the decline to aggressive trading strategies employed by professional investors.
While many had hoped Bitcoin would behave as a “safe haven” in the style of digital gold, its unpredictability shows that it behaves more like other tech-related stocks. Nvidia, the company behind the most sought-after GPU chips, has also seen significant gains this year and recently experienced similar sharp declines. | BGNES
Read more on BGNES: Breaking News, Latest News and Videos
