Bitcoin dips below $80,000 – What’s happening?

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https://cryptoast.fr/bitcoin-chute-sous-les-80-000-dollars-que-se-passe-il/

While it had been moving for a little over two weeks in an unstable equilibrium above the $80,000 level, the price of BTC has just crossed this symbolic downward threshold in the last few hours with a price which is around $79,750 at the time of writing these lines.

A decline, however, still under control, since it represents a drop of less than 1% over the last 24 hours, with a total of liquidations recorded over this period which shows an amount of 140.7 million dollars for the entire cryptocurrency market, and 34.5 million dollars for Bitcoin.

According to data from the Coinglass site, these liquidations still concern a total of 65,718 traders over the last 24 hours, the majority (more than 54%) registered on the rise (long). The largest liquidation recorded during this period concerns a BTC/USD position opened on Hyperliquid, for an amount estimated at $1.85 million.

A market hesitation accentuated by the reversal of trend recorded last week by the American spot Bitcoin ETFs, with three days of net inflows accumulating more than a billion dollars which finally gave way to 772 million dollars in net outflows over the days of Thursday and Friday. And a start to the week which is currently recording $110 million in positive flows this Monday, October 26.

A situation also weighed on by several major economic factors, with decisions expected this weekend regarding rates from the American Federal Reserve (Fed), the European Central Bank (ECB) and the Bank of Japan.

Indeed, the President of the American Fed, Kevin Warsh, is due to speak this Wednesday at 7 p.m. on the subject of key rates, which should most certainly remain unchanged (between 3.75 and 4%) according to the FedWatch monitoring tool which estimates this probability at 90%. But the real question concerns more precisely its prospects for the end of this year, with the risk of moving towards a more restrictive policy which could put Bitcoin under pressure in the short term.

Additionally, the U.S. is also due to release its highly anticipated 3rd quarter GDP figures and the September PCE index, which the Fed uses to measure inflation, on Thursday. With the risk of once again seeing the 2% objective swept away by a higher than expected figure (beyond 3%) which could reinforce the prospect of a more restrictive monetary policy.

Then also come the decisions of the ECB, this Thursday, and the Bank of Japan, Friday, regarding the very probable maintenance of their current rates, while allowing for the possibility of a possible increase on the side of Japan in December which could weaken the yen carry trade strategy and lead to a possible unwinding unfavorable to Bitcoin.

Machine-translated from French