Key Points
- Bitcoin’s price fell below $70K due to a bearish outlook in November.
- The total crypto market cap dropped by over 5%, led by Ethereum.
Bitcoin’s price, which closed around $70K in October, started November on a bearish note.
The leading cryptocurrency saw a drop of over 4% on the first day of November, trading at about $69,215 during the mid-London session. This drop in Bitcoin’s price led to a bearish outlook in the larger crypto market, with nearly $1 trillion being wiped out from the US stock market in the last 24 hours.
Impact on the Crypto Market
Data shows that the total cryptocurrency market cap fell by over 5%, a decline led by Ethereum. As a result, the market cap stood at around $2.42 trillion at the time of reporting. This led to around $290 million being liquidated from the crypto-leveraged market in the past 24 hours, with $259 million involving long traders.
Reasons for Bitcoin’s Price Drop
The cryptocurrency industry experienced increased volatility in the past 24 hours, largely due to the futures and options market and upcoming high-impact news. Market data from CoinGlass shows that Bitcoin’s options volume increased from below $300 million to around $2 billion in the last few days.
In addition, investors in top spot Bitcoin ETF issuers in the United States withdrew their funds, except for BlackRock’s IBIT which saw $318 million in cash inflows on Thursday. After gaining nearly $2 billion in cash inflows on Tuesday and Wednesday, the US spot Bitcoin ETF issuers registered a net cash inflow of around $32 million on Thursday.
The price of Bitcoin is also reacting to the expected volatility in the coming days, amid high-impact news from the United States. On November 5, the US 2024 presidential election will conclude, which will heavily influence the regulatory framework in the largest global economy over the next four years.
The crypto market is keenly awaiting today’s data on the unemployment rate, which will greatly influence the Fed’s decision on interest rates next week. After the first rate cut in September, the Fed is expected to make another cut next week to improve the country’s economic outlook.
Midterm Expectations
Despite the recent drop, Bitcoin’s price has performed well in the last two months, and the bullish trend is expected to continue for the remainder of the year. However, Bitcoin’s price could experience increased volatility in the coming weeks, potentially leading to short-term bearish movements.
Crypto analyst Ali Martinez suggests that Bitcoin’s price will likely find solid support above $69K, potentially leading to a rally towards a new all-time high in the near term. Martinez has set a short-term target range of between $78K and $84K, which could be achieved by the end of this year.
