Bitcoin and Altcoins Continue to Weaken: Decline Target is 80 Thousand Dollars

Bitcoin has risen by %1.8 during the day, starting to trade at $103,000. However, it continues to remain in a technical downtrend since reaching its $126,000 peak in October. CoinDesk analyst Omkar Godbole notes that Bitcoin has rebounded to around $103,000 after briefly falling below the $100,000 level. The average of the top 20 cryptocurrencies has increased by %1.8 in the last 24 hours, while Bitcoin’s market dominance has risen to %60. However, it is pointed out that weakness in the altcoin market continues; leading altcoins like ENA and APT have lost more than %20 in value this week.

Godbole emphasized that the strengthening of the dollar and uncertainties regarding the Federal Reserve's interest rate reduction process have increased selling pressure in the crypto market. He shared the information that more than $300 million in leveraged positions were liquidated in the last 24 hours, most of which came from short positions. While the open interest ratio in Zcash (ZEC) futures is rising rapidly, the still negative funding rates indicate that investors are cautious against a potential correction.

Godbole also pointed out that downward concerns have become evident in short-term Bitcoin and Ethereum options on the Deribit exchange. He highlighted that some investors have purchased Bitcoin put options at the $80,000 level, indicating an increasing bearish expectation in the market. Another noteworthy development is CoinDesk analyst Francisco Rodrigues' comments on the HIP-5 governance proposal raised on the decentralized exchange Hyperliquid. This proposal foresees transferring %5 of the platform's revenue to a fund called AF2, which will support new projects. However, Rodrigues mentions that opinions in the community regarding this proposal are divided.

In light of these developments, it is becoming increasingly important for investors to monitor their expectations for declines in the crypto market and short-term price movements. The downward pressures indicate a critical period that cryptocurrency investors need to pay attention to.