:max_bytes(150000):strip_icc()/GettyImages-2242228897-c83ab5424c3340f48e4d1be8ce2229b3.jpg "Bitcoin’s Price Hasn’t Been This Close to 0,000 in Months")
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Key Takeaways
- Spot bitcoin ETFs saw some $1.3 billion in outflows since Oct. 29, according to data platform SoSovalue; spot ether ETFs experienced outflows of almost $500 million over the same time period.
- The weakness in the world’s most well-known cryptocurrency weighed on major stocks linked to it including MicroStrategy, Coinbase Global and Robinhood.
Red October is spilling into November.
The price of bitcoin, the world’s best-known and most-valuable cryptocurrency, earlier today fell more than 3% to its lowest point—below $103,000—since hitting its all-time high price of over $126,000 in early October. The weakness extends declines that began after what is now called the crypto market’s Black Friday in the middle of last month, which helped pull bitcoin down for the month to mark its first red October since 2018.
Whether those declines will turn into a full-on downturn typical for this stage in the coin market cycle, or coax investors back into the mix with lower prices, remains to be seen. So far Tuesday, investors appear to be wary. Crypto’s fear and greed index, which is aimed at measuring sentiment in the market, turned to fear yesterday from a neutral position last week, according to CoinMarketCap.
Why This Matters to Investors
Cryptocurrencies tend to be volatile, and sharp declines tend to follow long upward runs. How long recent declines will last remains to be seen, but the price of bitcoin is currently the closest it’s been to $100,000 in months.
The falling price of bitcoin—it hasn’t been below $100,000 since May—comes amid mounting outflows in spot bitcoin ETFs. BlackRock’s iShares Bitcoin Trust (IBIT), Fidelity Wise Origin Bitcoin Fund (FBTC) and Grayscale Bitcoin Trust (GBTC) collectively saw net outflows of some $1.3 billion since Oct. 29, according to data platform SoSoValue. Roughly $500 million ran out of spot ether ETFs over the same time period.
Altcoins including ether (ETHUSD) and solana (SOLUSD) were hit harder, falling at least 5%. The weakness also dragged on major bitcoin-linked stocks including MicroStrategy (MSTR), Coinbase Global (COIN), and Robinhood (HOOD) which were down at least 3%.
Some bitcoin bulls have lately leaned in. Strategy, cofounded by bitcoin evangelist Michael Saylor, on Monday said it acquired 397 bitcoin for an average purchase price of $114,771 between Oct. 27 and Nov. 2.
