Bitcoin Breaks Below $71,000, Down 12% in Eight Days
Bitcoin was trading around $70,840 on Binance's Tether market on Nov. 12, down about 4% from a day earlier. It fell as low as $70,688 during the session. It was the first time Bitcoin had dropped below $71,000 on Binance since Aug. 20, ending a roughly 12-week stretch above that level.Risk appetite weakened after Nvidia shares fell 4.34% on Nov. 12 following news that Chief Executive Officer Jensen Huang had resigned. Pressure from interest rates also increased. The U.S. consumer price index for October, released on Nov. 10, rose 0.4% from a month earlier, above the 0.3% estimate. The yield on the 10-year U.S. Treasury note climbed to 5.12% on Nov. 12.Buying demand has yet to show a clear recovery within the crypto market. CryptoQuant said leverage is declining, but spot demand is not recovering consistently. A sustained rebound will require new buyers rather than simply fewer sellers.Cash on the sidelines also appears to be shrinking. Stablecoin supply fell by $14.2 billion over the 30 days through Nov. 9, according to Glassnode. That was the fastest decline since June 2022. The drop suggests investors are redeeming stablecoins into dollars and pulling money out of the market, weakening the liquidity that could support a price rebound.Even if Bitcoin rebounds, selling by investors seeking to reduce losses may limit further gains. In a report released on Nov. 11, Bitfinex said about 1.6 million Bitcoin bought between $75,000 and $80,000 are now underwater. If the price approaches about $75,700, the average entry price for recent buyers, selling near breakeven could emerge.