Analyst Reveals Why Bitcoin Price Crashed From $73,000 To $69,000
02 Novembre 2024 - 7:00PM
NEWSBTC
November began with an unexpected downturn in the crypto market as
Bitcoin, which had gone on a bull run in the last week of October,
rapidly lost its momentum. The highly anticipated “Moonvember”
kicked off with an unexpected crash, plummeting from $73,000 on
October 31 to $69,000 on November 1 to essentially wipe out $296
million in liquidations, with the majority of them being long
positions. Despite the bulls managing to steady a Bitcoin price
support at $69,000, the rapid downturn stirred questions among many
crypto traders. Related Reading: Ethereum Claims Address Dominance
With 43% Lead—Will It Keep Rising? According to crypto expert Ash
Crypto on social media platform X, this quick crash in the Bitcoin
price can be attributed to four major factors. Key Reasons
Behind Bitcoin’s Price Drop According to Ash Crypto, the recent
Bitcoin price isn’t a straightforward result of crypto-specific
events but rather a reflection of the broader economic landscape.
As he noted, there are currently multiple reports suggesting that
Iran may be planning a military action against Israel from Iraqi
territory. The potential escalation of conflict in the region
seemed to have created uncertainty among Bitcoin investors, and
many might have opted to exit from the markets. “As we all know,
war is bad for Bitcoin and crypto,” the analyst said. Aside from
the brewing conflict, Ash Crypto also highlighted the recent
earnings reports from tech giants as another factor in the Bitcoin
price crash. Major tech companies like Microsoft and Meta recently
posted earnings reports that, despite beating expectations, showed
rising AI-related costs. This led to a downturn in many other tech
stocks, which spilled over to other financial markets, including
the crypto industry. Another factor Ash Crypto highlighted is the
recent climb in US Treasury’s bond yields, specifically the 10-year
note, which is now trading above 4.3%. Higher yields make
government bonds a more attractive alternative, making investors
less likely to invest in more volatile assets like
cryptocurrencies. Lastly, the latest Core Personal
Consumption Expenditures (PCE) reading increased slightly above
2.7%. Ash Crypto noted that this rise in core inflation could push
the Federal Reserve toward a more hawkish stance. This could lead
to the Fed adopting higher interest rates or delaying rate cuts.
Both scenarios could dampen demand for Bitcoin, which thrives in
low interest rates, as shown by the September 18 interest rate cut.
Looking Ahead: What’s Next For Bitcoin? Like many other crypto
analysts, Ash Crypto remains confident that Bitcoin’s latest dip is
only temporary. He drew parallels to October’s initial market dip,
while anticipating that November, or “Moonvember,” will follow a
similar trajectory. Interestingly, the analyst believes Bitcoin
still has the momentum and market interest needed to push past
$80,000 before the end of November. Related Reading: Bitcoin Breaks
$73,000, Yet Google Searches Stay Stagnant—Is Hype Fading? At the
time of writing, Bitcoin is trading at $69,678 and is up by 4% in
the past 24 hours. Featured image from Pexels, chart from
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