Bitcoin price: Deep decrease
Early this morning (November 4), Bitcoin - the world's largest cryptocurrency by market value witnessed a deep decrease of 2.33%, reaching 107,831.56 USD.
This new price contributed to bringing market capitalization to 2,160 billion USD, down 61 billion USD. However, trading volume in the 24 hours increased to 46.85 billion USD, an increase of 16.56 billion USD.
Assessment and forecast
The explanation for the fluctuations in Bitcoin is said to follow comments from Federal Reserve Chairman Jerome Powell, who said that another interest rate cut in December was not "an obvious conclusion".
The announcement came after cutting 25 basis points in October, reducing expectations of continued monetary easing.
Meanwhile, Finance Minister Scott Bessent warned that the Fed's tightening "may have pushed part of the economy, especially housing, into recession." His comments reinforced concerns that the rate cut could stem from economic weakness rather than confidence in a smooth landing.
The CME FedWatch tool now shows a 69.3% probability of another rate cut in December, down from previous expectations.
In the event that Bitcoin's decline falls below below 107,500 USD, it will trigger a wave of forced liquidation, increasing selling pressure. Ethereum was hit hard by $85.6 million in long-term settlements, followed by $74.6 million in Bitcoin and $35 million in Solana.
Analysts now warn that if Bitcoin falls below $106,000, the market could face an additional $6 billion in liquidations, potentially prolonging the correction.
