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(Kitco News) – The price of Bitcoin (BTC) continued to slide in Tuesday trading as there were no notable developments on the ground. The BTC Exchange Traded Fund (ETF) left traders little to be excited about in the near future.
The latest consumer price index (CPI) report fell short of expectations, leading to a rapid decline in the 10-year US Treasury yield and the DXY, as traders took the news as another sign that the Federal Reserve is holding off on further interest rate hikes becomes . This led many to become more risk-averse, as evidenced by significant increases in major stock market indices.
Bitcoin price recovered from an intraday low of $35,865 after the CPI release and climbed back above support at $36,100 by midday.
BTC/USD chart from TradingView
At the time of writing, BTC is trading at $36,110, down 1.64% on the 24-hour chart.
AltTab Capital’s Greg Moritz addressed the pause in Bitcoin’s rise, reminding traders that “the price of an asset rarely increases continuously.”
“The Bitcoin price charts continue to show higher lows and higher highs, suggesting that we are now in the bull phase of the crypto market,” said Moritz. “It is worth noting that even in a bullish market, pullbacks often occur after a significant uptrend, just as we are seeing.”
Mathieu Ziaei, portfolio manager and risk officer at Criptonite Asset Management, said the current macroeconomic landscape presents “interesting dynamics” for Bitcoin and Ether (ETH).
“Amid a difficult bond auction, the Federal Reserve’s commitment to adjust policy in response to the decline in long-term yields remains a central narrative,” Ziaei said. “Crypto is surging again after a year of resilience, especially with support from Wall Street giant BlackRock. Rally-fueled stocks are pointing to an uptrend, with the S&P 500 recovering from a brief setback. The Nasdaq 100’s new all-time highs compared to the Russell 2000 represent outperformance of technology stocks, which has historically been associated with uptrends in the broader market. This contrasts with concerns about dominance by mega-cap tech stocks, as demonstrated by Microsoft’s impressive performance.”
At the same time, “Bitcoin has experienced a revival,” he said. “Despite a multi-layered selling wall in the $38,000-$40,000 range on some exchanges and historical downtrends after November 8, market sentiment is cautiously optimistic.”
“The impending decision on a Bitcoin ETF adds additional uncertainty, with scenarios ranging from market boredom if not approved to potential speculative inflows if approved,” Ziaei said. “We are currently in a window of possible approval until November 17th.”
Ziaei also noted that the price of Ethereum increased due to BlackRock’s application for a spot Ether ETF.
“Asset management giant BlackRock has registered to create an Ethereum trust, a possible first step in asking regulators to approve an exchange-traded fund tied to the Ether token, the second-largest digital asset by market cap,” he said. “As Bitcoin and Ethereum navigate these complex macroeconomic currents, the stage is set for a fascinating period influenced by monetary policy, market sentiment and the evolving role of cryptocurrencies in traditional finance.”
Lady of Crypto succinctly summed up the sentiment of crypto traders in the following tweet, noting that we are in the “dips are for buying” phase of the bull market.
We are in the “dips are for buying” phase of the cycle.
Here the winners are separate losers.
We’ve been waiting two years for this part… Now that it’s here, don’t screw it up!
– Lady of Crypto (@LadyofCrypto1) November 13, 2023
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