Bitcoin slumped in October and continues to struggle to gain momentum in November.
That’s according to a report Tuesday (Nov. 11) from Bloomberg News, which noted there are signs of mounting fatigue across cryptocurrency markets after a $340 billion plunge.
The price of bitcoin, the most popular crypto, briefly rose above $107,000 Monday (Nov. 10) before sliding back below $105,000, highlighting the lingering uneasiness following a widespread selloff that wiped out billions in market value.
The coin has yet to find its footing again, the report added. Open interest in Bitcoin perpetual futures was at roughly $68 billion, down from the $94 billion record seen last month.
Flows into exchange-traded funds also show little energy. US-listed Bitcoin ETFs took in just $1 million in net inflows on Monday, even as stocks and credit shot up following news that the government shutdown was nearing an end.
“It feels like a dead cat bounce,” George Mandres, senior trader at XBTO Trading, told Bloomberg News, essentially arguing this was a short-lived recovery amid a longer downturn.
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“Equities trade risk-on, with expectations that the US government reopening can add more fuel to the rally. In crypto, the sentiment is different for now as the narrative around OG whales (early Bitcoin) buyers, selling a significant amount of coins has received a lot of mind-share.”
The price of bitcoin has been enjoying record highs this year, but began a downturn last month over tariff woes that was exacerbated by investor concerns about steep valuations for artificial intelligence (AI) companies.
The Bloomberg report adds that Bitcoin has lost about $340 billion in market value since a surprise tariff announcement by the White House last month led to record liquidations.
In fact, it was — in the words of data tracker Coinglass — “the largest liquidation event in crypto history,” just days after the price of bitcoin hit a record $125,000. More than $19 billion was wiped out and more than 1.6 million traders liquidated. Upwards of $7 billion of those positions were sold in just an hour of trading.
The downturn is also reportedly impacting the “crypto treasury” space, referring to companies that sold shares or borrowed funds and put that cash into crypto.
A weekend report by the Wall Street Journal pointed out that Strategy, a pioneer in this space, saw its price peak at $128 billion in July, but was down to $70 billion as of that report, following to $68 billion Tuesday.
