Bitcoin experienced a significant correction, leading to a price drop below $93,000, with a 6.72% decrease over the past 24 hours. This slump has erased its weekly gains, reducing them from over 10% to below 1%. Major cryptocurrencies followed suit, with assets like Solana, BNB, Cardano, and DOGE dropping as much as 7%. The broader CoinDesk 20 Index declined nearly 3%. Analysts suggest that a 10% correction from recent highs is normal, retaining a short-term target of $100,000 per BTC. Observations indicate a negative risk reversal on options markets, with put options valued higher than call options, hinting at protective strategies among traders. Meanwhile, Ether, which briefly outperformed Bitcoin, saw a 5% decline but remains a point of interest, especially with its ETH/BTC ratio showing notable shifts recently. The situation reveals how leveraged trading can amplify market movements, as seen with the Defiance Daily Target 2x Long MSTR ETF, which plummeted 41% in just three days.

Source 🔗