Bitcoin price: Increased again
This morning (November 6), Bitcoin - the world's largest cryptocurrency by market value reversed and increased by 2.22%, reaching 103,789.69 USD.
This new price contributes to bringing market capitalization to 2,069 billion USD, up 5 billion USD. However, trading volume in the 24 hours increased by 17.4 billion USD, remaining above the 66.47 billion USD threshold.
Assessment and forecast
Bitcoin plummeted as investors' concerns about the possibility of a US government shutdown and slowing economic growth led to the biggest wave of digital currency sell-offs in the world.
The currency has fallen more than 6% to below $100,000, its lowest level since June. From a peak of more than $126,000 in early October alone, Bitcoin has lost about 20% of its value.
Sean Farrell - Director of Digital Assets at Fundstrat said that the phenomenon of "wallet" selling - investors holding large amounts of Bitcoin has increased in the past few weeks, creating downward pressure on the market.
According to Ed Engel - an analyst at Compass Point, long-term investors have sold more than 1 million bit bit bit bit bitches since the end of June, showing a shift in assets to new owners.
"Selling from long-term investors is a common phenomenon in price increase cycles, but the number of retail buyers this year is significantly smaller" - Engel commented. He also said that capital flows into Bitcoin ETFs have recently stagnated.
Engel predicts that Bitcoin could be supported in the $95,000 price range, but lacks short-term momentum. Uptober - the October law that usually increases prices - has not happened for the first time since 2018, and that year, Bitcoin prices fell 37% in November, he added.
In addition, weak US manufacturing data for the 8th consecutive month, along with the lack of vitality of the stock market and Fed Chairman Jerome Powell's cautious statement about the possibility of a December interest rate cut, are making investors worried.
Strategists believe that the tight liquidity caused by the US government's closure also contributed to the decrease in prices, as the General assured Tax (TGA) - the government's main spending account - stalled.
