Bitcoin below $75,000: Key factors driving the crypto market

Résumé détaillé

Bitcoin traded near $73,600 to $73,800, struggling to sustain recovery due to US inflation concerns, Federal Reserve rate hike expectations, and ongoing ETF outflows.

Bitcoin was trading around $73,600-$73,800 on Thursday, November 12, struggling to sustain a recovery as concerns over US inflation, expectations of further Federal Reserve rate hikes and continued withdrawals from Bitcoin exchange-traded funds (ETFs) weighed on investor sentiment.

The cryptocurrency briefly moved above $74,500 but failed to hold those gains.

Ethereum was also trading cautiously around $2,050, while other cryptocurrencies saw mixed movements.

Nischal Shetty, Founder of WazirX, said stronger US equity markets and lower volatility had provided some support to cryptocurrencies. However, persistent inflation, a stronger dollar and ETF outflows continued to limit buying interest.

Stronger-than-expected US inflation data has strengthened expectations of another Federal Reserve rate hike in December. Higher interest rates and a stronger dollar can weigh on cryptocurrencies by reducing investor appetite for riskier assets.

Vikram Subburaj, CEO of Giottus, said Bitcoin's recovery remained fragile, with the cryptocurrency trading below its short-term holder cost basis of around $75,600.

Institutional flows have also remained weak. US spot Bitcoin ETFs recorded around $1.58 billion in net outflows across the seven completed trading sessions through November 10, Subburaj said.

Shetty noted that Bitcoin ETFs saw $95 million in outflows in the latest fully reported session, while Ethereum ETFs recorded smaller withdrawals.

Riya Sehgal, Research Analyst at Delta Exchange, said on-chain data from Glassnode showed accumulation by wallets holding large amounts of Bitcoin during the recent correction. At the same time, deposits by large holders into exchanges suggest that selling pressure has not disappeared.

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