What’s Behind the Recent Bitcoin Dip?

Bitcoin's recent price drop follows its all-time high of over $93,000 earlier this week, with multiple factors contributing to the decline.

Recent US inflation data, including a 2.6% rise in the Consumer Price Index (CPI) and a 2.4% increase in the Producer Price Index (PPI), has spooked investors. These figures have raised concerns that the Federal Reserve might adopt a more hawkish approach, weighing on market sentiment.

In addition, Bitcoin miners have been selling off large amounts of BTC, including 2,000 coins from a 2010-era wallet, and 25,000 BTC recently moved to exchanges, adding to the bearish pressure.

The US Spot Bitcoin ETF saw a $400.7 million outflow on November 14, halting a streak of inflows and signaling reduced investor interest. Meanwhile, large Bitcoin holders have been cashing out, with a whale dumping 4,060 BTC over a few days, fueling further concerns about a price dip.

Despite the pullback, analysts remain optimistic about Bitcoin’s long-term potential, noting that short-term corrections are common in bull runs. Many see the current dip as an opportunity for investors to buy at lower prices before a potential price recovery.