Bitcoin is currently trading at $70,801, down by over 1% in the last 24 hours. Bitcoin’s decline follows a failed attempt to reach a new all-time high, facing resistance near $73,500. After testing the $72,000 and $71,500 support levels, the price has dipped below the $70,000 mark, breaking a key bullish trend line and signaling potential short-term challenges.
In a surprising move, Reddit announced a substantial sale of its Bitcoin and Ethereum holdings in Q3 2024, citing minimal financial impact in an SEC filing. This significant crypto exit comes as Reddit reconsiders its treasury approach amid a challenging economic environment.
WisdomTree, a major ETF provider in the United States also made headlines with its latest Bitcoin and Ethereum dump worth $599M. This follows as the top two cryptos witnessed sharp price declines over the last 24 hours. However, the fund manager still holds a significant amount of BTC and ETH raising speculations over further dip ahead.
But what are the factors for the Bitcoin price decline and the recent dumps? Let’s dive deeper. A number of factors may be playing into the recent drop, which has taken BTC below its record.
The recent news that Iran may plan an attack on Israel from Iraqi territory has heightened geopolitical tensions. War and instability tend to negatively impact Bitcoin and crypto markets, and hence could take a toll on Bitcoin and crypto at large.
Recently, Tech giants Microsoft and Meta posted earnings reports that, despite beating expectations, have revealed rising costs due to AI investments. This caused a drop in their stock prices, dragging down the overall market, including crypto.
The 10-year Treasury note is now trading above 4.3%. Historically, rising bond yields consistently drive down demand for equities as investors pivot toward safer options. This shift significantly impacts riskier assets, particularly Bitcoin.
Core PCE, a key inflation measure, rose slightly above 2.7%. This may prompt the Fed to adopt a more hawkish stance and could pressure both equity and crypto markets.
Economist and gold advocate Peter Schiff, known for his critical views on bitcoin has recently shared insights on both assets amid recent market shifts. In a latest X post, Schiff noted that, despite rising odds of a Donald Trump victory in the 2024 U.S. election, bitcoin has not followed the upward momentum that can be seen in other Trump-related assets, such as stocks and real estate.
Schiff believes that speculators may have already bought up BTC, diminishing demand, and that a “Trump dump” could bring the price of the crypto down if Trump-related assets eventually decline.
While these factors are likely contributing to a temporary dip in Bitcoin’s price, however many expect that just like “Uptober,” “Moonvember” could bring a recovery, with BTC potentially reaching $80,000.
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