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.
JPMorgan analysts are raising doubts about Bitcoin’s role as “digital gold” as demand for traditional gold continues to strengthen.
Cryptocurrency analyst Ali Martinez has raised concerns about Ethereum’s future performance against Bitcoin, suggesting a significant decline could be on the horizon.
The U.S. Bitcoin mining sector is gearing up for potential challenges after President Donald Trump announced new tariffs, set to take effect on April 5.
The cryptocurrency market faced a sharp decline after President Donald Trump announced new tariffs, triggering a sell-off that wiped out around $509 million in value.