As of now, Bitcoin is trading at $70,801, experiencing a decline of over 1% in the past 24 hours. This downturn follows a thwarted attempt to reach a new all-time high, encountering resistance near the $73,500 threshold. After testing the support levels at $72,000 and $71,500, Bitcoin’s price has dipped below the crucial $70,000 mark, breaking a key bullish trend line and indicating potential short-term challenges ahead.
Latest Bitcoin Dumps
In a surprising turn of events, Reddit has announced a substantial sale of its Bitcoin and Ethereum holdings in the third quarter of 2024. The company cited minimal financial impact in an SEC filing, highlighting a significant crypto exit as it reevaluates its treasury strategy amidst challenging economic circumstances. This move has raised eyebrows in the crypto community.
Similarly, WisdomTree, a prominent ETF provider in the United States, has made headlines with its latest Bitcoin and Ethereum sale, amounting to $599 million. This decision comes as both Bitcoin and Ethereum have experienced sharp price declines over the past 24 hours. Despite this sale, the fund manager still retains a substantial amount of BTC and ETH, prompting speculation about potential further declines.
Factors Contributing to Bitcoin’s Price Decline
Several factors may be contributing to Bitcoin’s recent drop below its record levels. Let’s delve deeper into these influences:
The Iran-Israel Conflict
Recent reports suggest that Iran may be planning an attack on Israel from Iraqi territory, heightening geopolitical tensions. Historically, war and instability tend to negatively impact Bitcoin and broader crypto markets, potentially taking a toll on Bitcoin’s value.
Disappointing Tech Earnings
Recently, tech giants Microsoft and Meta released earnings reports that, while exceeding expectations, revealed rising costs due to AI investments. This revelation resulted in a drop in their stock prices, consequently affecting the overall market, including cryptocurrencies.
Rising Bond Yields
The 10-year Treasury note is currently trading above 4.3%. Historically, rising bond yields consistently drive down demand for equities as investors pivot toward safer investment options. This shift significantly impacts riskier assets, particularly Bitcoin, as investors seek refuge in more secure investments.
Core PCE Increase
The Core Personal Consumption Expenditures (PCE) index, a key inflation measure, has risen slightly above 2.7%. This increase may prompt the Federal Reserve to adopt a more hawkish stance, potentially exerting pressure on both equity and crypto markets.
“Get Ready For Trump Dump” – Insights from Peter Schiff
Economist and gold advocate Peter Schiff, known for his critical views on Bitcoin, recently shared insights regarding recent market shifts. In a recent social media post, Schiff noted that despite increasing odds of a Donald Trump victory in the 2024 U.S. election, Bitcoin has not followed the upward momentum seen in other Trump-related assets, such as stocks and real estate.
He remarked, “The #Trump trade is on, yet Bitcoin is the one Trump asset not rallying. It’s widely believed that a Trump win is bullish for Bitcoin. So why isn’t Bitcoin rising along with the betting odds on Trump? Maybe all the speculators have already bought. Get ready for the Trump dump.”
Schiff suggests that speculators may have already purchased BTC, reducing demand, and that a “Trump dump” could occur if Trump-related assets eventually decline.
Looking Ahead: Potential for Recovery
While these factors are contributing to a temporary dip in Bitcoin’s price, many experts anticipate a potential recovery in the near future. Just as “Uptober” brought positive momentum, “Moonvember” could see Bitcoin reaching new heights, potentially climbing to $80,000. Despite the current negative market sentiment, traders remain hopeful that the market will rebound, bringing Bitcoin back on track for further growth.
