Bitcoin attempts to recover to $88,000, short liquidations expand

Source: BlockMedia Original Title: [Coin Market] Bitcoin Attempts to Recover to $88,000… Short Liquidations Expand Original Link: https://www.blockmedia.co.kr/archives/1027357 On the 2nd, Bitcoin rebounded by about 1%, trading around $88,770. As the U.S. stock market continues its weak trend without a Santa rally ahead of the year-end, Bitcoin, which had once fallen to $70,000, showed signs of recovery, attempting to regain $80,000.

As of 8:20 AM, Bitcoin(BTC) was traded at 128.55 million KRW, up 0.38% from 24 hours earlier, on domestic digital asset exchanges. The Korea(Kimchi) Premium was 0.63%.

At the same time, on global exchanges, Bitcoin was trading at $88,770, up 1.29%. Ethereum(ETH) rose 1.06% to $3,005, Binance Coin(BNB) fell 0.07% to $863, XRP(XRP) increased 2.04% to $1.88 (approximately 2,710 KRW), and Aster(ASTER) rose 3.04% to $0.711.

The New York Stock Exchange closed lower on the last trading day before the year-end. Major indices declined as tech stocks led the sell-off, dampening expectations for a year-end rally. The market is watching the Federal Reserve(Fed)'s potential rate cuts and the performance momentum of the AI(AI) sector.

The S&P 500 index closed down 9.51 points(0.14%) at 6,896.23, marking a decline for three consecutive trading days. The Nasdaq Composite fell 0.24% to 23,419.08, and the Dow Jones Industrial Average declined 94.87 points(0.20%) to 48,367.06. The Russell 2000 index, focused on small and mid-cap stocks, dropped sharply by 0.74% to 248.03, showing a larger decline.

This index correction is attributed to profit-taking in tech stocks. Industry experts added, “Next year, we may see a broader sector expansion away from the small number of stocks dominating the market this year.”

Meanwhile, the digital asset market is continuing a slight rebound. As a result, the derivatives market is seeing liquidations mainly of short(sell) positions that bet on declines.

The total liquidation volume over 24 hours was $121.46 million(about 1.075 billion KRW), a 46% decrease from the previous day. Among these, short positions amounted to $76.54 million(about 725 billion KRW), which is more than long positions at $46.93 million(about 445 billion KRW).

In the short-term trend, this atmosphere is even more pronounced. Short position liquidations reached $20.51 million(about 2.96 billion KRW), about five times the long liquidations of $3.96 million(about 570 million KRW).

Accordingly, trading in long positions was slightly higher. Based on 4-hour data, long positions totaled $2.27 billion(about 3.277 trillion KRW), slightly surpassing short positions at $2.12 billion(about 3.063 trillion KRW).

Top traders also reduced their trading volume but still maintained a dominance of long positions. On global exchanges, the ratio of long to short positions was 2.63 for accounts and 2.51 for positions, both above 1.

Meanwhile, the Fear&Greed index, which indicates market sentiment in digital assets, dropped to 20 points today, down from 21(the previous day). The index ranges from 0 to 100, where closer to 0 indicates strong selling sentiment, and closer to 100 indicates strong buying sentiment.