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Rapid Downturn Triggers $400M in One Hour
A sudden selloff in the crypto market led to $400 million in liquidations within 60 minutes, dragging global crypto market capitalization down 4% to $3.04 trillion. The rapid downturn sparked a wave of trading activity as both retail and institutional participants moved quickly to adjust their positions under mounting price pressure.
Market data showed a spike in daily trading volume to over $110 billion, underscoring the speed of the correction. According to CoinGecko, Bitcoin’s market dominance reached 57.1%, while Ethereum held 11.3% during the volatility.
The Kobeissi Letter attributed the sharp decline to thin weekend liquidity combined with elevated leverage, noting, “This crypto bear market is still structural in nature. We do NOT view this as a fundamental decline.” The analyst highlighted that Bitcoin fell $4,000 within minutes without any major catalyst, triggering a chain reaction of liquidations across leveraged positions.
Analysts Compare Current Pattern to Previous Cycles
Some market observers warn that Bitcoin’s current trajectory resembles earlier bearish phases. After recovering above $90,000 following a decline on November 20, Bitcoin hovered around $91,208.85 on November 28, holding support near $90,000 for nearly a week.
Korbot Labs points to similarities with April 2024, when Bitcoin briefly reclaimed the $70,000 level before sliding to $57,000 in May and stabilizing near $67,000 in June. Analysts suggest this pattern could lead to further sideways action or another corrective downturn. Key technical support levels remain in focus, and a deeper drop—potentially toward $48,000—would require sustained bearish sentiment, according to market commentators.
Asset Rotation Narrative Gains Traction
Some analysts argue that the recent selloff may reflect a broader shift in capital allocation rather than a crypto-specific issue. Precious metals have outperformed in recent sessions, hinting that investors may be reassessing their appetite for risk. Silver, in particular, posted a sharp rally as Bitcoin retreated.
As analyst Macrobysunil wrote, “While #Bitcoin just erased most of the last week gain in a single candle, #Silver is breaking out vertically like there’s no tomorrow. Money is choosing real assets over speculative assets. The rotation is screaming loud: Paper wealth → Hard money, Digital risk → Monetary metals.”
This view remains widely debated. Bitcoin has historically rebounded from steep declines, and its 57.1% dominanceindicates that it continues to attract the bulk of digital-asset flows despite ongoing volatility.
Market Watches Key $87K Level
On December 1, Bitcoin briefly dipped below $87,000 before recovering quickly. At the time of writing, the cryptocurrency is trading between $87,200 and $87,400, with traders closely monitoring whether the $87,000 support will hold in the near term.
