Bitcoin experienced a significant downturn, dropping from $73,000 to $69,000 at the start of November, dubbed "Moonvember." This unexpected fall led to $296 million in liquidations. The decline prompts Bitcoin traders to question its cause, despite a steady support level at $69,000.
Crypto expert Ash Crypto identified four major factors behind the crash. The potential conflict involving Iran and Israel stirred uncertainties, causing investors to exit the crypto market. "War is bad for Bitcoin and crypto," Ash Crypto emphasized.
Tech companies like Microsoft and Meta posted earnings exceeding expectations but showed increased AI-costs. This led to downturns in tech stocks, affecting the broader financial markets, including crypto. Rising US Treasury bond yields also played a role, with higher yields attracting investors to less risky assets than cryptocurrencies.
The rise in Core Personal Consumption Expenditures (PCE) hints at a more hawkish Federal Reserve stance. This could lead to higher interest rates or delayed rate cuts, impacting Bitcoin demand. Despite these challenges, Ash Crypto remains optimistic, expecting Bitcoin to reach $80,000 by November's end.
