Bitcoin Falls to a Seven-Week Low: Investors Are Shying Away from Risky Bets
The price of the cryptocurrency with the largest market capitalization fell below $76,000
On November 5, shares of Bitcoin-related companies lost one-tenth of their market capitalization / Photo: Frame Stock Footage / Shutterstock.com
Bitcoin fell below $76,000 during trading on November 5: it dropped about 6% at one point and hit a seven-week low, Bloomberg reported. The sell-off coincided with a broad sell-off in the U.S. stock market: the Nasdaq 100 index fell 6.4% at its intraday low — driven down by chipmakers amid weak earnings forecasts and concerns that Democratic control of Congress would lead to tighter regulation of the artificial intelligence industry.
Shares of cryptocurrency-related companies also fell on Thursday: shares of Strategy, a public holder of Bitcoin, the cryptocurrency exchange Coinbase, and the trading platform Robinhood lost more than 10%.
The cryptocurrency market has not yet recovered from the cyberattack on the Binance exchange, which led to a decline in retail investor activity, Bloomberg noted. Fluctuations in tech stocks have only intensified this pressure, despite a decline in U.S. Treasury yields—which typically supports speculative assets, Bloomberg noted.
Bitcoin’s price movements are linked to the broader sell-off in the U.S. tech sector, according to Vetle Lunde, head of research at K33, a Norwegian investment and brokerage firm specializing in cryptocurrencies and digital assets. In his view, these developments are a reaction to the U.S. midterm elections: the broader market remains extremely volatile as it tries to assess the implications of the Democrats’ success.
From October 29, when hackers attacked the Binance cryptocurrency exchange, through November 4, investors withdrew $1 billion from Bitcoin spot ETFs, according to Bloomberg. BlackRock’s IBIT fund was hit the hardest, with about $900 million flowing out of it.
Just a month ago, nearly all tokens held by short-term holders—investors who had bought Bitcoin in the past 155 days— — were in the black for their owners, according to Glassnode, a Swiss analytics firm specializing in cryptocurrency market research. Now the picture has changed: against the backdrop of a falling price, this share has shrunk sharply, they wrote in a report this week. “Most of the coins held by short-term holders are now at a loss,” the experts noted.
This article was AI-translated and verified by a human editor
