Bitcoin has fallen to the lows of November 2024: is it time to sell cryptocurrency

Bitcoin has dropped below 93,000 dollars and has practically lost all annual gains made less than a month ago. After a record high of 126,251 dollars at the beginning of October, the cryptocurrency sharply declined due to cooling expectations regarding the cryptocurrency-friendly policy of the Trump administration. This is reported by Bloomberg.

Why Bitcoin is falling

In recent weeks, the activity of major players has significantly decreased. This has taken away the influx of funds from the market that kept Bitcoin near record levels. The biggest declines were seen among:

• Exchange-traded funds

• Corporate cryptocurrency holders

• Long position investors.

Previously, ETFs provided over 25 billion dollars in inflows and raised the sector's total assets to approximately 169 billion dollars, but now that flow has almost disappeared. At the same time, technology stocks are cooling down, reducing overall demand for risky instruments.

Market sentiment and expert comments

Analysts explain the decline as a combination of profit-taking by old owners, institutional outflows, macro uncertainty, and liquidation of over-leveraged positions. Jake Kennys from Nansen notes:

«The market has temporarily chosen to move down after a long phase of sideways action».

The situation with Michael Saylor's Strategy Inc. is also telling: the company's shares have almost equaled the actual volume of its Bitcoin reserves, indicating a decline in demand for high-leverage risk models.

In crypto, caution reigns again. According to Matthew Gogan from Bitwise, retail investor sentiment is «extremely depressed», and many are exiting the market to avoid the potential repeat of a deep drawdown.