The price of Bitcoin has just fallen below the psychological threshold of $100,000. How far could the cryptocurrency, which has been on a downward trend in recent weeks, fall?
Bitcoin price drops below $100,000
After briefly crossing this symbolic threshold several times in early November, the price of Bitcoin (BTC) took a plunge overnight that appears to be more sustained. This morning, the largest cryptocurrency is trading around $96,500.
Since the beginning of the summer, the BTC price had remained firmly above $100,000, reaching a new all-time high in early October. But a slowdown has occurred since then:
Bitcoin price slumps following summer highs
The drop is affecting the entire cryptocurrency market. While BTC has lost 6% over the past 24 hours, Ether (ETH) has fallen 8.8% over the same period. Ripple’s XRP and Solana’s SOL have lost 7.1% and 7.7%, respectively. In total, the cryptocurrency market cap has fallen 5.6% since yesterday.
Will this trend continue?
Bitcoin, like other cryptocurrencies, is facing a host of negative signals, which explain this gloomy mood. In the United States, the Federal Reserve is hesitant to continue its policy of lowering interest rates, which is weighing on assets considered risky.
Furthermore, the successive gains of the past two years are encouraging investors to take profits. This could trigger a domino effect—the market sentiment of the Fear & Greed Index currently points to “extreme fear .”
It should also be noted that Bitcoin is often correlated—at least partially—with stocks. Yet Wall Street is faltering this week, particularly in tech stocks: the S&P 500 closed down 1.66% yesterday, with the Nasdaq down 2.29% and the Dow Jones down 1.65%.
Could this sharper decline signal the start of a real “bear market” after months of euphoria? Yes, according to Morgan Stanley, which stated yesterday that BTC was heading into its winter:
We are currently in autumn, the harvest season—the time to take profits. But the big question is: how long will this autumn last before the next winter?
