Bitcoin plunges to a six-month low, further worsening the bear market.-OzABC

Bitcoin prices fell again on Thursday (13th), hitting a six-month low, as selling pressure continued to intensify. Market sentiment turned pessimistic as long-term holders accelerated their exits, further worsening the bear market.

Bitcoin’s plunge intensified on Thursday, falling another 3.4% to $98,308, its lowest price since May 8, and down about 22% from its all-time high of $126,273 on October 6, entering what Wall Street defines as a “bear market.”

图片[1]-Bitcoin plunges to a six-month low, further worsening the bear market.-OzABC

CryptoQuant, a cryptocurrency analytics firm, points out that investors holding Bitcoin for more than 155 days sold approximately 815,000 Bitcoins in the past 30 days , the highest 30-day level since January 2024, indicating increasing pressure on liquidity. Analysts note that this group of investors is typically less prone to selling, and their recent actions can be seen as a reversal signal in market sentiment.

Demand also showed signs of cooling. Listed companies that have included Bitcoin in their balance sheets increased their holdings by only 14,400 coins in October, a new low for the year. Furthermore, the covering of large long positions established in anticipation of year-end price increases also pushed Bitcoin further down.

In terms of market liquidity, the financial system experienced a temporary tightening of funds due to the prolonged US government shutdown that began in October. In addition, investors were concerned that delayed economic data releases would reveal uncertainties about the economic situation, putting pressure on overall risk assets.

On Thursday, all three major U.S. stock indexes posted their weakest performance in more than a month, with the S&P 500 and Dow Jones Industrial Average both falling 1.7% and the Nasdaq falling 2.3%.

The market is still digesting the record-breaking single-day leveraged liquidation on October 10, when over $20 billion in leveraged positions were liquidated. This factor has also resulted in Bitcoin’s year-to-date gain of only 5.8%, significantly lagging behind the Nasdaq ‘s 18.6% performance.

David Tawil, president of ProChain Capital, stated that despite Bitcoin’s recent significant weakness, the crypto industry still benefits from regulatory support. Once tech stocks resume their upward trend, Bitcoin could still see a rebound opportunity.

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Bitcoin plunges to a six-month low, further worsening the bear market.

1Largest net outflow in history! BlackRock IBIT saw over $500 million outflow in a single day, signaling a red flag for market confidence?

2Kraken, a long-established exchange, has announced its IPO plans! It has confidentially filed its S-1 document with the SEC and could list as early as the beginning of next year.

3Southeast Asian super app Grab partners with StraitsX to build a stablecoin payment network and accelerate the integration of Web3 into daily food delivery and ride-hailing.

4Bitcoin is entering a “midlife crisis”: How did veteran Crypto win over Generation Z?

5Abu Dhabi’s sovereign wealth fund is ramping up its Bitcoin holdings! In Q3, it added 5.5 million shares of IBIT, bringing its total investment to nearly $1 billion.

6Don’t be a slave to your emotions when investing: First, think clearly about these 5 propositions.