While the selling pressure on the leading cryptocurrency Bitcoin (BTC) and altcoins continues, there was a major decline last night.
While BTC fell to $109,000, Etheruem (ETH) fell below $4,000 to $3,800.
While the reason for this decline is being wondered, Bloomberg Senior Commodity Strategist Mike McGlone analyzed what triggered Bitcoin’s ongoing downtrend.
In his analysis shared from his X account, the analyst said that the stagnation in US stocks deepened the decline in Bitcoin.
McGlone included a chart tracking the 60-day volatility of gold, Bitcoin, and the S&P 500 in his analysis.
Stating that, according to the data in the chart, US stocks are going through a recession period, McGlone argued that while this recession has a positive effect on gold, it also contributes to the downward pressure on Bitcoin.
While Bitcoin has been struggling to combat sharp declines since the beginning of the week, the precious metal gold hit a new record high around $3,800 per ounce earlier this week. This divergence between Bitcoin and gold suggests that investors are increasingly viewing Bitcoin as a risk-on asset.
What is the Critical Level for Bitcoin?
Finally, Mike McGlone stated that the critical level that could drive Bitcoin’s price action in the fourth quarter is $100,000.
According to the analyst, this psychological level acts as a crucial support line amidst the BTC price’s continuous declines. This suggests that if Bitcoin fails to hold this level, the decline could deepen further.
*This is not investment advice.
Source: https://en.bitcoinsistemi.com/bloomberg-analyst-explains-the-reason-for-bitcoins-decline-this-data-dropped-bitcoin-raised-gold/
