Bitcoin Plummets to $88,800 Amid Futures Market Deleveraging, but Spot Demand Holds Strong

On December 7th, CryptoQuant Research Manager Julio Moreno reported a notable drop in Bitcoin prices, which fell to $88,800. This decline was primarily attributed to a significant deleveraging event in the futures market. However, spot demand for Bitcoin remains robust, suggesting resilience among investors. The decrease in price accompanied a marked reduction in open contracts, signaling that many long positions were liquidated amidst the sell-off. Furthermore, a decline in the funding rate was observed, reflecting shifts in market sentiment and trader dynamics. These developments underscore the ongoing volatility in the cryptocurrency space, emphasizing the necessity for investors to remain vigilant about market conditions.