Coinspeaker
Bitcoin Price Drops to $35,000 but Analysts Continue to Be Optimistic
Over the last two days, the Bitcoin price has come under some selling pressure dropping another 3% in the last 24 hours and moving closer to $35,000. Bitcoin (BTC) encountered fluctuations on Tuesday following the release of the October Consumer Price Index (CPI) report by the United States Bureau of Labor Statistics (BLS). The data disclosed a reduction in inflation, standing at 3.2%, slightly below the anticipated 3.3%, and a decline from September’s 3.7%.
In the traditional markets, there is a prevailing sentiment that the Federal Reserve has concluded its rate hikes and might even consider rate cuts in the first half of 2024. In the latest session, the Nasdaq surged by 2.3%, marking a monthly gain of over 10%, while the S&P 500 rose by 1.8%.
Bond markets experienced notable shifts, with the 10-year Treasury yield plummeting by 20 basis points to 4.44%. This contrasts with the situation just three weeks ago when the yield had surpassed 5% for the first time in over 16 years.
The US dollar also reflected this trend, witnessing a substantial 1.55% decline in the DXY Index. Despite the challenging session for cryptocurrencies, Grayscale, an investment management firm, suggests that the combination of slower inflation and reduced bond yields could lend support to crypto prices, as stated in their Tuesday report. The world’s largest asset manager noted:
“We believe the recovery in crypto valuations can continue if real interest rates peak and we continue to see progress toward spot ETF approvals in the US market.”
Bitcoin ETF Expectations
The entire crypto community has glued its expectations on the approval of the spot Bitcoin ETF as the SEC will announce its decision by November 17. Most likely, there could be another delay with analysts expecting the ETF to come by early January 2024.
Bloomberg’s senior ETF strategist James Seyffart stated that as the SEC is approaching the deadline for three spot #Bitcoin ETF applications, they may issue delay orders. Despite potential delays, there would be no impact on our perspectives, maintaining a strong 90% probability for 19b-4 approval by January 10, 2024.
Okay, we're nearing in on deadline dates for 3 spot #Bitcoin ETF applications. I want to get ahead of it because there's a pretty good chance we'll see delay orders from the SEC. Delays WOULD NOT change anything about our views & 90% odds for 19b-4 approval by Jan 10, 2024 pic.twitter.com/LE7sOlHAHM
— James Seyffart (@JSeyff) November 14, 2023
The recent Bitcoin price correction comes as Bitcoin whales have been booking profits since the start of 2023. Bitcoin addresses holding 1,000+ BTC have booked significant profits and redistributed the holdings.
On November 3, #Bitcoin whales started booking profits as the $BTC price rose from $35,000 to nearly $38,000. More than 15 wallets with over 1,000 #BTC sold or redistributed their holdings. pic.twitter.com/YZ3GvujLWm
— Ali (@ali_charts) November 14, 2023
Renowned cryptocurrency analyst Ali Martinez observed that Bitcoin has lost important support at approximately $36,400. The next major support levels for Bitcoin are at $34,300 and $30,200. He further added that if the price of Bitcoin ($BTC) rises while network growth decelerates, it serves as a warning sign. This scenario implies that the upward trend may lack sufficient momentum to endure. The bearish divergence between #BTC price and network growth acts as an on-chain sell signal that traders should take note of.
Bitcoin Price Drops to $35,000 but Analysts Continue to Be Optimistic
