Can the acceleration of Crypto Assets bottom out and can Nvidia's financial report stabilize market confidence?

The S&P 500 index ended a four-day fall, with differing opinions in the Federal Reserve's minutes from the October meeting. Traders expect the probability of a rate cut on December 10 has dropped to 32%. Bitcoin (BTC) fell more than 10% in the past week, hitting a low of $88,608 last night, while Ether (ETH) also dropped to $2,873. Although the crypto market saw some increase following NVIDIA's impressive earnings report, overall sentiment remains very fragile, with the Fear and Greed Index still in the extreme fear range at 16. K33 issued a report stating that this rapid correction has amplified leverage, presenting a dangerously fragile structure, with BTC possibly retracing to 84K~ 86K.

The Federal Reserve (FED) meeting minutes show divergence, and the expectation for a rate cut in December has significantly decreased.

The Federal Reserve (FED) October meeting minutes indicate that many central bank officials believe it may be appropriate to keep interest rates unchanged for the remainder of 2025. According to the CME FedWatch Index, traders expect the probability of a rate cut of 25 basis points on December 10 has fallen to 32%. Due to data gaps and unclear tariff impacts, market uncertainty is quite high.

Bitcoin falls to 88K, with a total liquidation of 658 million USD across the network.

Bitcoin has fallen more than 10% in the past week, hitting a low of $88,608 last night, the lowest point since the end of April.

Ether (ETH) also fell to $2,873 yesterday, with $658 million in positions liquidated in the crypto market over the past 24 hours, led by $223 million in ETH, followed by $168 million in BTC.

Although the crypto market has risen due to NVIDIA's impressive earnings report, the overall sentiment remains very fragile, with the Fear and Greed Index still in the extreme fear range at 16.

K33: The adjustment of the leverage increase may cause BTC to pull back to 84K~ 86K

The Bitcoin derivatives market is showing the dangerous and structurally concerning pattern described by K33, as traders are adding aggressive leverage during the deepening correction, which has caused Bitcoin to fall more than 10% over the past week, reaching a low of $88,608 last night, the lowest point since the end of April.

The report indicates that the open contracts of perpetual futures traders have increased by more than 36,000 Bitcoins, marking the largest weekly increase since April 2023, while the funding rate is also on the rise, suggesting that traders are taking a “knife-catching” approach rather than defensive positions.

“The continuously rising financing rates may stem from the execution of limit orders, which initially hoped for a swift price rebound. However, the rebound did not occur, and this leverage effect increases the risk of intensified market volatility due to liquidations.”

In contrast, the futures premium on the Chicago Mercantile Exchange is close to its annual low, with the term structure remaining narrow, reflecting the ongoing risk-averse sentiment among institutional participants. K33 warns that historically, such divergences often foreshadow future price declines.

K33 estimates that the potential bottom is between 84K~ 86K USD. If the selling pressure intensifies, it may further fall to the April low of 74,433 USD.

This article discusses whether the cryptocurrency is accelerating towards the bottom, and if NVIDIA's financial report can stabilize market confidence? Originally appeared on Chain News ABMedia.