Sign In
By signing in or creating an account, you agree with Associated Broadcasting Company's Terms & Conditions and Privacy Policy.
By signing in or creating an account, you agree with Associated Broadcasting Company's Terms & Conditions and Privacy Policy.
New Delhi: The world's largest cryptocurrency — Bitcoin, is facing the biggest monthly drop in three years. So far this month, this digital token has fallen by more than 21 percent. Earlier in June 2022, Bitcoin had recorded a drop of more than 20 percent. This means that investors have seen a decline of more than $22,700 i.e. more than Rs 20 million on one Bitcoin.
This decline is mainly due to the trend of increasing liquidity and risk aversion in speculative assets. Several major altcoins have also fallen, deepening the overall slowdown in the crypto market. On Tuesday, November 25, the flagship cryptocurrency traded around $86,800 after recovering from a sharp decline that hit a seven-month low.
Avinash Shekhar, Co-founder and CEO of Pi42, said that the crypto market is balancing between a deep crisis and signs of a selective correction. The recent drop in the crypto market has reduced excess leverage and reduced liquidity, while changes in Federal Reserve interest rates and the issuance of new ETFs are encouraging frequent flows. Let us also tell you what are the reasons behind this decline.
According to data from CoinGecko, Bitcoin has fallen drastically since early October, falling from a lifetime high of around $126,000 to below $82,200. According to analysts, long-term investors continue to make profits and have sold nearly 800,000 bitcoins this month — the biggest wave of such sell-offs since January 2024.
When interest rates are low, Bitcoin tends to rise. But given mixed signals about the Federal Reserve's third interest rate cut in December, this uncertainty could impact the price of Bitcoin. Shekhar further said that on-chain and technical signals indicate a possible surge when buyers return, although signs of structural decline still remain relevant. Rising optimism about a possible interest rate cut in December has eased some widespread pressure and fueled strategic buying.
Bitcoin has declined in recent weeks, which is a sign of decline in technical stocks and other risk-sensitive assets. Macroeconomic concerns, Trump's unpredictable trade war and concerns about the increased valuation of AI companies are affecting sentiment.
Jebpay COO Raj Karkara said in the Mint report that investors are making profits, sentiment is keeping pace with global cues, and short-term caution is visible, but none of this points to a structural decline in Bitcoin's long-term trend. Although the recent drop below the $82,000 threshold cannot be ruled out, the confidence of on-chain indicators, institutional interest and long-term holders remain strong.
(Disclaimer: This article is only meant to provide information. TV9 does not recommend buying or selling shares or subscriptions of any IPO, Mutual Funds, gold, silver and crypto assets.)
