Here’s The Reason Why Bitcoin Price Drop Today

Bitcoin price has plummeted by 14% from $21,500 to $17,166 on Nov. 8 after topping $21,500 on Nov. 4.

Despite Bitcoin’s price decline, the Nasdaq only fell by 0.32%, while the Dow Jones gained 0.48% in anticipation of the United States midterm elections on Nov 8.

The Reason Behind The Drop

Currently, $614 million in BTC longs will be liquidated as a result of current volatility, with over $224 million liquidated on November 8.

For many, if the FTX issue does not get resolved by Binance’s bid for the exchange, a sharper sell-off in the market would trigger a liquidation cascade and fuel further declines in the price of BTC.

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Moreover, in September the Consumer Price Index report showed that United States inflation increased by 0.6%.

According to the Consumer Price Index report, which is widely followed as a measure of inflationary pressure, the overall rate of inflation in September 2022 rose to 8.2% from 8.1% expected by experts.

Bitcoin’s price dropped 12% in 24 hours before the CPI report on Nov. 10, setting a new record low for 2022.

The Probability for Bitcoin Price Going Up

Long-term institutional investors appear unconcerned with the short-term instability of cryptocurrencies.

An institutional investor poll commissioned by BNY Mellon found that 91% intended to invest in tokenized assets in the following years, according to the CEO  Robin Vince.

There are about 40% of them who own cryptocurrency, and approximately 75% of them are actively investing in digital assets or are thinking about doing so. 

Worries about FTX’s potential bankruptcy clearly contributed to the recent decline in Bitcoin price.

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Despite this, participants in the market still expect Bitcoin’s price to rise in the long run, especially as more banks and financial institutions prefer digital cash for settlement.

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Jamilatul Mahmudah

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