Mike McGlone, Bloomberg Intelligence Senior Commodity Analyst, discusses Bitcoin’s recent tumble and the latest moves in gold.
Bitcoin began the week on the back foot following a prolonged selloff that has put the token on track for its worst month since 2022.
After regaining some ground over the weekend, the original cryptocurrency fell as much as 3.1% to dip below $86,000 on Monday. It was trading at around $85,700 as of 9:53 a.m. in New York.
While that’s higher than the Friday lows of $80,553, traders see little cause for celebration. The wider crypto market is in a pronounced slump despite surging institutional adoption and a series of policy wins pushed for by US President Donald Trump, who has embraced the industry.
Read more: Crypto’s Brutal Month Triggers a Stress Test for Wall Street
“Early trading today is showing slight weakness, but the moves are fairly small and within normal variations,” said Caroline Mauron, co-founder of Orbit Markets. Bitcoin is likely to trade in $80,000 to $90,000 range throughout the week, as the market looks for clues about the Federal Reserve’s upcoming rate decision, she added.
In crypto options market, traders are building downside protections at lower levels even Bitcoin prices have seen a slight rebound in the last 24 hours. Demand for put options at the strike of $80,000 has surpassed those at $85,000, becoming the most popular contracts, according to Coinbase-owned crypto exchange Deribit.
Meanwhile, the Bitcoin funding rate – a key measure of crypto market sentiment – has turned negative in the last few days, according to CryptoQuant, meaning there is more demand for bearish bets in the perpetual futures market than bullish positions. That figure had been persistently positive even amid the market rout in recent weeks. The flip points to signs of deepening slump in digital assets as more traders bet against the largest cryptocurrency.
Without a turnaround, November will become Bitcoin’s worst month since a string of corporate collapses rocked the crypto market in 2022, a wipeout that culminated in the downfall of Sam Bankman-Fried’s FTX exchange.
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