Bitcoin slips below $74,000 mark, experts explain the factors influencing the cryptocurrency this week

Detailed summary

Bitcoin fell 0.4% to $73,344.71 on 12 November, while the broader crypto market declined 0.78% to $2.43 trillion. Analysts cited inflation concerns, a stronger dollar, ETF withdrawals and shifting investment toward AI as pressures.

Bitcoin price today: The world's largest cryptocurrency was trading at $73,344.71 at time of writing, on 12 November, down 0.4% over the past 24 hours, with market capitalisation at $1.47 trillion, down 0.35%, according to data on CoinMarketCap.

While in the red, this is slight improvement from Bitcoin touching $72,695 on 10 November — its lowest level in around three months. As per a Bloomberg report, faster-than-estimated increase in United States inflation and signals that the US Federal Reserve could hike interest rates pushed down risk appetite for risk assets such as cryptocurrencies.

Meanwhile, the second largest crypto, Ethereum was also in the red today, trading at $2,044.40, down 0.49% over the previous day, with market cap of $249.85 billion, down 0.68%, the CoinMarketCap data showed.

Bitcoin maintained dominance with 60.5% of the market pie, up 0.71% among the tokens, followed by Ethereum which holds 10.2% of the crypto market, down 0.67%, while the remaining tokens comprise 29.2% of the pie, down 0.03%. At time of writing, the overall crypto market cap was at $2.43 trillion, down 0.78% over the past 24 hours, the data showed.

According to Nischal Shetty, Founder of WazirX, the crypto markets attempted to stabilise as stronger US equities and lower volatility provided some support, but persistent inflation, a stronger dollar and continued ETF withdrawals kept participation measured.

Alex Kuptsikevich, chief market analyst at FxPro noted that the crypto market cap dropped below $2.45 trillion — at its lowest since August as cryptocurrencies, which had lagged significantly behind equities on Monday, failed to catch up on Tuesday and came under pressure.

Kuptsikevich felt that interest in AI amid Anthropic’s IPO is drawing risk capital away from crypto, while CPI data showing accelerating inflation, strong US jobs figures, and possibility of a 50-bps interest rate hike by the US Fed in December — all underpinned by a strong economy, is hurting cryptos and…

Shetty…

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