Today’s cryptocurrency market has fallen even further, with Bitcoin prices hovering near seven-month lows and major cryptocurrency stocks seeing declines.
Bitcoin price is currently trading at $89,090, down 4% in the past 24 hours, with a 24-hour trading volume of $71 billion. The cryptocurrency is 4% below its seven-day high of $93,662 and roughly unchanged from its seven-day low of $88,800, according to data from Bitcoin Magazine Pro. With 19.95 million BTC out of the maximum 21 million BTC in circulation, Bitcoin’s market capitalization reaches $1.78 trillion.
At the time of writing, Coinbase Global is down 4.9%, Bitfarms is down 7.5%, Strategy is down 10.3%, Riot Platforms is down 3.7%, Hut 8 Mining is down 3.3%, and Mara Holdings is down 6.6%.
Market activity has been heavily influenced by investor flows into Bitcoin exchange-traded funds (ETFs). BlackRock’s Spot Bitcoin ETF (IBIT) posted a record single-day outflow of $523.2 million on Tuesday, the largest outflow since the fund was launched in January 2024.
This occurred despite Bitcoin’s price increasing by a modest 1% earlier in the week, with the cryptocurrency briefly trading above $93,000.
On average, IBIT investors buy Bitcoin at a Bitcoin price of $90,146 and are green-out at current prices.
Bitcoin price analysis
Analysts caution that while short-term price movements are primarily driven by sentiment, long-term trends are shaped by macro positioning and liquidity conditions.
Current sentiment indicators are near multi-year lows, indicating a potentially attractive entry point for long-term investors, although trading activity has been subdued.
Meanwhile, Bitcoin miners appear to be adjusting their strategies in response to market volatility. After a period of heavy distributions, miners’ 30-day net BTC positions are slowly accumulating following recent capital increases in the sector, indicating a newfound confidence in holding mined Bitcoin rather than selling it.
Despite the short-term turmoil and price fluctuations in ETFs, market observers note that Bitcoin’s broader fundamentals remain intact. Liquidity trends and continued institutional interest suggest that Bitcoin prices may remain stable in the $90,000 range as investors weather volatile market conditions.
Sentiment remains weak as increased volatility and reduced liquidity make the market sensitive to even small flows. Nansen’s Nikolaj Sondergaard points out: bitcoin magazine According to yesterday’s announcement, market depth has decreased by about 30% since the October 10 liquidation, meaning that modest selling could sharply move Bitcoin, which recently fell below $90,000. Leverage further amplifies this volatility.
“When liquidity is this thin, you need far less money to move the market in either direction, and with more leverage, volatility becomes inevitable,” Sondergaard said.
bitcoin price sentiment
Last week, market sentiment turned sharply bearish after Bitcoin price fell below the key weekly support level of $96,000. Analysts at Bitcoin Magazine Pro and Feral Feral Analysis pointed to thick resistance above $94,000 and persistent seller pressure, warning that a meaningful rebound is unlikely.
They noted that $83,000 to $84,000 is thick support and $69,000 to $72,000 is another zone, and said a drop to the mid-$80,000s is increasingly likely amid rising volatility.
Upside scenarios remained limited. Even if there was a short squeeze, it would have hit the major resistance between $106,000 and $109,000. The general bearish trend can only be challenged if the weekly closing price is above $116,000.
Earlier this week, New Hampshire became the first state in the U.S. and the first government in the world to approve municipal bonds backed by Bitcoin, creating a potential entry point for digital assets into the $140 trillion global bond market.
The state’s Bureau of Business Finance (BFA) approved a $100 million conduit bond allowing private companies to borrow over-collateralized Bitcoin held by BitGo.
This follows an earlier move by New Hampshire to allow up to 5% of public funds for digital assets, creating the country’s first Strategic Bitcoin Reserve.
At the time of this writing, Bitcoin price is hovering around $89,400.
This post comes as Bitcoin prices fall to nearly $88,000, hitting a seven-month low as crypto stocks slump. Originally published in Bitcoin Magazine and written by Micah Zimmerman.
