Bitcoin price fell to the $54,000 zone, suggesting that the selling may not be over yet
Bitcoin price and most other major altcoins sold off along with global stock markets and crude oil on November 26, as AZCoin News reported. At the time of writing, BTC is changing hands at $54,502. Is the current decline a mouthwatering Black Friday deal or the start of a short-term bear phase?
BTC/USD 4-hour chart | Source: TradingView
Bitcoin price slips to $54,000
The markets have been buzzing about the news of a newly discovered coronavirus variant in South Africa that has scientists worried due to a large number of its mutations in the spike protein.
The steep drop resulted in cross-crypto liquidations of more than $750 million in a 24-hour period but funding rates among exchanges are still increasing. This suggests the sale may not be over yet.
“The Thanksgiving dump caught many off guards this year, as Bitcoin dropped to below $54k for the first time since October 6th. Interest in buying the dip has subsequently spiked, indicating the crowd isn’t too phased by this recent volatility”, Santiment stated.
Bitcoin’s monthly close for November most likely won’t hit PlanB’s worst-case scenario of $98,000, as AZCoin News mentioned This will be the first miss after the model has correctly predicted it. month-end prices for August, September, and October. However, the stock-flow model creator believes that the $100,000 target for Bitcoin during this halving is still good. Is the current drop an attractive Black Friday deal or the beginning of a short-term bearish phase?
Bitcoin’s decline amid risk aversion in traditional markets suggests the cryptocurrency is yet to find acceptance as a safe haven. Lockdowns, if any, would perhaps worsen supply chain disruptions, pushing inflation higher – a positive for BTC, given it is widely perceived as a store of value asset. According to JPMorgan, Bitcoin’s October rally mainly resulted from the spike in inflation expectations and the cryptocurrency’s inflation hedge appeal.
COVID statistics | Source: Financial Times
Lockdowns, if any, would perhaps worsen supply chain disruptions, pushing inflation higher – a positive for bitcoin, given it is widely perceived as a store of value asset. According to JPMorgan, bitcoin’s October rally mainly resulted from the spike in inflation expectations and the cryptocurrency’s inflation hedge appeal.
Ethereum, which opened the day at $4,400, is now priced at just over $4,120 and is threatening to drop below the milestone price bracket. Still, the markets have had their say, and they remain firmly in the red.
The overall cryptocurrency market cap now stands at $2.462 trillion, and Bitcoin’s Dominance rate is 41.6%.
Sign up for a Binance account here (Discount 10% trading fees): https://accounts.binance.com/en/register?ref=29171587
- China Is Considering Establishing An Exchange For Trading Digital Assets In Beijing
- Foreign CBDCs Are Most Likely Going To Be Considered Legal Tender By European Central Bank