The first cryptocurrency updated the local minimum at around $ 55.6 thousand. Experts explained what it was connected with and predicted the asset's return to growth
On Friday morning, the bitcoin rate on the Binance crypto exchange fell to a monthly minimum of $ 55.6 thousand.Then the asset price again exceeded $ 57 thousand.As of 16:15, the first cryptocurrency is trading at $ 56.9 thousand, over the past day it has dropped 4%.
Against the background of a sharp pullback in the rate, the amount of liquidations of margin positions reached $ 678 million per day. Within 24 hours, positions of 172 thousand traders were forcibly closed. The largest loss per trade occurred on the Bitmex exchange in a pair of bitcoins against the US dollar and amounted to $ 7.2 million.
The rollback of bitcoin below $ 60 thousand did not come as a surprise, said Roman Nekrasov, co-founder of the ENCRY Foundation. He named several factors that played against Bitcoin:
- First, the rapid growth of bitcoin prompted many holders to take profits, especially miners who need to cover the costs of relocating production from China and launching new mining farms, and purchasing equipment. Selling the mined coins at the maximum price is very profitable;
- Second, on November 12, the US Securities and Exchange Commission (SEC) rejected VanEck's request to launch a spot Bitcoin ETF. And market participants no longer just hoped, but expected that the American regulator was about to surrender and approve the spot bitcoin ETF.
- Third, on November 15, US President Joe Biden approved a bill that would require any digital asset transactions over $ 10,000 to be registered with the IRS. Any serious regulatory decisions, especially those concerning the tax service in the United States, invariably lead to mild panic among market participants, since American tax authorities are famous for their meticulousness and ability to find the most confusing schemes in the most remote parts of the planet.
“All this together and led to the fact that bitcoin dipped below $ 60 thousand. However, I do not see any trend reversal. The general market sentiment is extremely positive, bitcoin is still in a bullish cycle, and not only bitcoin. Now we are witnessing a local recession, there will be many more such recessions, ”Nekrasov warned.
Anton Kravchenko, CEO of Xena Financial Systems, agreed with him. According to him, bitcoin was unable to overcome the level of $ 65 thousand and slightly corrected. The expert claims that institutions buy cryptocurrencies with a long-term goal above $ 100 thousand, more institutional purchases are now directed to Ethereum.
“I think that the current corrections should be bought out with the aim of $ 90 thousand, and be ready to close positions at the highs, because after a sharp movement into the zone above $ 100 thousand, a strong correction is possible,” Kravchenko predicted.
Analyst firm Glassnode reported that large long-term holders of bitcoin are not panicking over a 20% decline in bitcoin after renewing its all-time high. According to analysts, investors sold about 0.7% (100 thousand BTC) of their reserves during the month. Glassnode estimates the reserves of large holders at 13.5 million BTC.