Concerns grow in the cryptocurrency market as the ”roller coaster” of sudden rises and falls continues

The cryptocurrency market rebounded temporarily on expectations of a cut in the U.S. benchmark interest rate, but has become even more volatile over the past week, with a mix of crashes and recoveries.
The "roller coaster market" has continued this year, with sudden rises and falls, and the psychological burden on investors is increasing.
There is a strong view that volatility will continue. ■ From "crash" to "recovery"...Expectations of a December interest rate cut boost As of 3:20 pm on the 24th, data from CoinMarketCap showed that Bitcoin (BT
C) rose 1.02% from the previous day to $87,042. XRP rose 1.12% to $2.07, Solana (SOL) rose 0.99% to $131.60, and DoZicoin (DOGE) rose 2.1
It is trading at $0.1466, up 3%. Bitcoin fell to the $81,000 range on the 21st of last month, but has since recovered to around $87,000, in stark contrast to last week's crash.
The total market capitalization of crypto assets also increased by 1.1% from the previous day to $3.054 trillion, once again surpassing the $3 trillion mark. Expectations for a cut in the US benchmark interest rate are rising again, and crypto assets are shifting to risk assets.
This is due to the improvement in investment sentiment. Expectations for a rate cut were also boosted by comments made by New York Fed President John Williams on the 21st that "there is room for adjustment in monetary policy."
Choi YoonYoung, director of the Covid Research Center, analyzed that "the excess short selling that had accumulated after the sudden drop was released, causing a short-term short squeeze."
He explained that the net outflow of funds from the TF has eased, weakening selling pressure. ■ Anxiety is spreading... "Volatility will continue for the time being." Meanwhile, there are concerns about a "roller coaster market" where sudden drops and rebounds alternate.
On-chain analysis firm Glassnode said, "After Bitcoin fell below $90,000, volatility in the options market soared," indicating that short-term investors' sentiment was overly sensitive.
The cryptocurrency market is traded 24 hours a day and is not backed by physical assets, making prices susceptible to sudden changes due to macroeconomic factors such as interest rate trends and policy comments.
"As macroeconomic uncertainty grows toward the end of the year, futures market positions tend to be biased in one direction, causing repeated reversals," said Director Choi.
"The market has been shaken by a single remark from U.S. President Donald Trump on multiple occasions this year, further increasing investor anxiety.
■ Industry Outlook: "Unstable market will continue until a clear reversal signal appears" Cryptocurrency analysis company 10x Research said, "The market remains unstable, and until a clear trend reversal signal appears,
"The volatility will likely continue to increase," he predicted. CoinDesk, a media outlet specializing in crypto assets, also predicted that "volatility will increase further in the short term, and the likelihood of continued instability is increasing."