Why Did Bitcoin Price Fallen Today?

As a result of a flush-out of aggressive long traders, the value of Bitcoin fell today, under $35,000.

Source: www.ekonomim.com

On November 14, the positive impetus that drove Bitcoin to 31.8% 30-day profits began to fade, despite lower-than-expected inflationary figures indicating a 3.2% annual increase. Nearly $100 million worth of bitcoin was sold in less than an hour, suggesting that the price was overheated even after conventional markets responded favorably to a lack of monthly increases. Not all experts are concerned about the recent decline in the price of Bitcoin; others think it is headed beyond $48,000. Let's examine the variables influencing the price of Bitcoin right now in more detail.

Long Bitcoin Positions Worth $126 Million Have Been Liquidated

The fundamental cause of the rapidity of today's price decrease seems to have been a significant change in the Bitcoin futures market. On November 14, long Bitcoin transactions rapidly increased to over $97.9 million in a single hour, after liquidating over $126.3 million the previous day. The price of Bitcoin suffers when traders do not exert upward pressure on long positions in the cryptocurrency. After a November high of $13 billion achieved on November 9, bitcoin trade volumes had decreased by more than $7 billion.

Bitcoin Price Action. Source: Tradingview 

Some observers question if the recent Bitcoin price surge can last given the lack of steady liquidity and amount of trading. If liquidity declines, Bitcoin could rise swiftly again. Given that more than 54% of traders are still short Bitcoin on the futures marketplace, it appears that investors also anticipate a retreat.

Nov. 11 saw a year-to-date high proportion of accounts in profit, notwithstanding the decline in Bitcoin prices on Nov. 14. At present, more than 83% of both short-term as well as long-term investors are profitable. The rise corresponds with the price decline, although traders are still under the achieved profit level from October 24 despite an all-time high of wallets in profit. 

Higher quantities of trading in October encouraged profit-taking, which might have contributed to the price of Bitcoin rising. If additional traders begin collecting profits, the reduction in trading volume coupled with the large number of speculators in profit might cause the value of Bitcoin to continue falling. The long-lasting attitude of major investors appears not to have altered despite the short-term turmoil in the cryptocurrency market. Two large organizations, BlackRock and Invesco Galaxy, had exchange-traded fund (ETF) tickers posted on the Depository Trust and Clearing Corporation homepage notwithstanding a harsh regulatory climate in the United States.

Disclaimer: FameEX makes no representations on the accuracy or suitability of any official statements made by the exchange regarding the data in this area or any related financial advice.