Bitcoin hits lowest price since June as forced sales surge
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Bitcoin has fallen hard over the last day, sinking to the lowest price since June and threatening to drop below the psychologically important level of $100,000.
Why it matters: Ever since the market peak in early October, the key question for crypto traders has been whether or not the top is in.
The big picture: Macroeconomic headwinds for risk assets are severe.
- Fed chair Jerome Powell has signaled the central bank may not be aggressive about future rate cuts, which would limit the liquidity that's crucial to propping up bitcoin price.
- The ongoing government shutdown and trade war engender uncertainty in the market, which causes investors to divest from risk assets.
Catch up quick: Bitcoin hit a fresh all time high of $126,080 on October 6.
- Then, on October 10, after the president teased massive tariffs on China, a flash crash liquidating $19 billion worth of positions shook the crypto market.
- Ultimately, October would be the first down month for bitcoin in seven years, despite setting a new record.
By the numbers: There have been another $405 million in liquidations against bitcoin traders in the last 24 hours, according to Coinglass.
- Over 90% of the liquidations went against those betting bitcoin would trade higher.
- Massive outflows also hit the exchange traded crypto market last week.
What they're saying: "Every rally and dip now feels like a microcosm of US geopolitical power," Houston Morgan, the leader of the crypto exchange ShapeShift, said in a statement.
- "US and China relations are still more damaged than ever. We don't expect crypto to go any higher than $125k USD in 2025."
Yes, but: A report yesterday that collated predictions from 22 market watchers projects bitcoin reaching $138,000 by the end of the year.
What we're watching: That $100,000 mark, first broken exactly 11 months ago.
- If price drops to the five figure range again, that could deflate believers.
