Bitcoin price has experienced a decline, falling below $27,000 for the first time this month. This drop comes despite a four-day rally in stocks and falling bond yields. In the past 24 hours, BTC has decreased by 2.5%, while ether has declined 0.7% to near $1,550. Other cryptocurrencies such as XRP, LTC, and DOT have also experienced a 2%-3% drop. Crypto derivatives traders who bet on higher prices with long positions have suffered $50 million in liquidations, with BTC constituting $22.5 million of the liquidations.
Traditional markets, on the other hand, have continued to post gains. The Nasdaq has advanced 0.7%, and the S&P 500 has added 0.4%. The 10-year U.S. Treasury yield has also been lower by 10 basis points to 4.56%.
Bitcoin’s Steadiness Fizzles Out
The remarkable steadiness of the Bitcoin price over the past weeks amid falling U.S. stocks and bond market rout appears to have fizzled out. This comes after the cryptocurrency failed to break above a heavy resistance at around $28,000, which is a confluence of the 200-day and 200-week moving averages. Some analysts have noted that narratives will shift bearish for Bitcoin as spot holders begin unwinding in fear of lower prices. This hints at a potential fall below $25,000.
Bitcoin could potentially find support at the upper bound of its downtrend from summer. If it fails to do so, it could fall further to $24,000-$25,000. Despite this potential decline in the short-term, Bitcoin may be primed for higher prices in the long run.
Billionaire Investor Paul Tudor Jones on Bitcoin
Billionaire investor Paul Tudor Jones has expressed his love for gold and Bitcoin, given the combination of extensive geopolitical risks and rising U.S. debt levels and interest payments. This could indicate that despite the current decline, Bitcoin price has the potential to rise in the future.
Factors Contributing to Bitcoin’s Decline
There are several factors that have contributed to the decline in Bitcoin price. One of these factors is the heavy resistance at around $28,000, which has prevented the cryptocurrency from breaking through and reaching higher values. Additionally, the fear of lower prices has caused spot holders to start unwinding, further contributing to the decline.
Short-Term vs. Long-Term Outlook
While the short-term outlook for Bitcoin price may seem bleak, the long-term outlook remains positive. With investors like Paul Tudor Jones expressing their support for the cryptocurrency, it is evident that there is still potential for growth in the future.
Conclusion
In conclusion, the Bitcoin price has fallen below $27,000 for the first time this month, despite a four-day rally in stocks and falling bond yields. This decline has been attributed to factors such as heavy resistance at around $28,000 and spot holders unwinding in fear of lower prices. Although the short-term outlook may appear negative, the long-term outlook remains positive, with investors like Paul Tudor Jones expressing their support for the cryptocurrency.
