Bitcoin Plunges into Capitulation Territory Amid US Dollar Strength
Bitcoin has entered a severe capitulation phase, mirroring three of its most traumatic historical episodes, the COVID-19 crash, China's mining ban, and the Terra Luna collapse.
The digital asset dropped from $126,000 in early October to around $80,000 in under two months, forcing short-term holders to realize substantial losses.
Market analyst Axel Adler attributes the intense sell-off to persistent US dollar strength, with the DXY index holding above 100 and tightening global liquidity conditions.
The probability of a December Federal Reserve rate cut has climbed to 69%, according to market pricing data. If investors begin factoring this development into asset valuations, it could reverse current macro momentum and potentially trigger a relief rally.