Bitcoin Price has once again dipped below the critical $100,000 mark, marking the third instance this month where such a decline has occurred. The total crypto liquidations have surged to an astonishing $463 million within the last 24 hours. This event underscores a significant market shift and brings to light crucial insights affecting the cryptocurrency landscape.
As of 1:34 p.m. ET, Bitcoin was trading at $98,841.86, following a recent report by JPMorgan analysts who projected a support price for BTC around $94,000. The cryptocurrency experienced a decline of over 2% on Thursday afternoon.
Understanding the Bitcoin Price Drop
The data reveals that a substantial $342 million of the total liquidations were derived from long positions, according to CoinGlass. In parallel, bitcoin spot ETFs experienced a reduction of approximately $278 million on Wednesday.
JPMorgan’s note from Wednesday highlighted that Bitcoin’s estimated production cost, often seen as a price floor, has increased to about $94,000 from a previous estimate of $92,000. This rise is attributed to a significant increase in the Bitcoin network’s difficulty over recent months, escalating the production costs.
Impact of Economic Factors on Bitcoin Price
From a broader perspective, Nic Puckrin, co-founder of The Coin Bureau, suggested on Thursday morning that the ongoing government shutdown and the diminishing prospects of a rate cut are likely to exert pressure on Bitcoin’s price.
“The anticipated release of the U.S. CPI report from October was delayed due to the government shutdown, creating a substantial gap in federal data flow,” Puckrin noted. “This has led to a sharp decline in the odds of a December rate cut.”
He further stated, “As we approach the most uncertain FOMC meeting of the year, there could be a shift towards safety and defensive assets. Traders should remain vigilant in the coming weeks, especially when dealing with high-risk assets like Bitcoin.”
Disclaimer: The Block operates independently to deliver reliable, impactful news in the crypto sector. Foresight Ventures, a primary investor, also invests in other crypto-related companies, maintaining The Block’s objective reporting.
