The price of Bitcoin has just fallen below the psychological threshold of $100,000. How far could the cryptocurrency, which has been slumping in recent weeks, fall?
Bitcoin price falls below $100,000
After briefly crossing this symbolic threshold several times in early November, the price of Bitcoin (BTC) took a dive overnight that appears to be more lasting. This morning, the largest cryptocurrency is trading at around $96,500.
Since the beginning of the summer, the price of BTC had remained well above $100,000, reaching a new all-time high in early October. But since then, there has been a slowdown:
The fall is affecting the entire cryptocurrency market. While BTC has lost 6% over the last 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, cryptocurrency capitalization has fallen 5.6% since yesterday.
A trend that will continue?
Bitcoin, like other cryptocurrencies, is facing a series of negative signals, which explain this gloomy atmosphere. In the United States, the Federal Reserve is hesitant to continue its policy of lowering interest rates, which is undermining assets considered risky. Furthermore, the successive increases over the last two years are encouraging investors to take profits. This could trigger a domino effect—the Fear & Greed Index currently points to “extreme fear.” .”
It should also be noted that Bitcoin is often correlated—at least partially—with stocks. Wall Street is faltering this week, particularly in technology 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 said yesterday that BTC was heading for a 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?
