Crypto Downturn Wipes Out Nearly $1 Billion in Levered Bets

Market Overview - Cryptocurrencies experienced a significant decline, with Bitcoin dropping as much as 6% to below $86,000 and Ether falling over 7% to around $2,800, indicating a continuation of a broader selloff in the market [1] - The crypto market is under pressure following a weeks-long selloff that began with the liquidation of approximately $19 billion in leveraged bets in early October, shortly after Bitcoin reached an all-time high of $126,251 [2] Bitcoin Performance - Bitcoin lost 16.7% of its value in November but managed to recover slightly last week, rising above $90,000 before the recent selling pressure resumed [2] - Traders are now monitoring Bitcoin's performance closely, with $80,000 identified as a critical support level amid concerns over low inflows into Bitcoin exchange-traded funds and a lack of dip buyers [3] Macro Economic Influences - The cryptocurrency market is affected by broader macroeconomic trends, including fluctuations in Asian equities and rising Japanese government bond yields, which historically impact global risk assets like cryptocurrencies [4] - The upcoming week is crucial for assessing US economic momentum, as policymakers consider interest rate trajectories, which could influence market sentiment towards cryptocurrencies [5] Company Insights - Strategy Inc. CEO Phong Le indicated that the company might sell Bitcoin if its mNAV (market net asset value) falls below 1x, highlighting the company's current mNAV of 1.19 and its substantial Bitcoin holdings valued at $56 billion [6]