Bitcoin Price Analysis: BTC On Track For Worst Month Since 2022
Bitcoin (BTC) plunged to a low of $80,524 on Friday, with analysts stating that the flagship cryptocurrency had entered the most bearish phase of the current cycle.
However, analysts are optimistic of a rebound as the probability of a rate cut in December doubled in 24 hours, boosting market sentiment.
Federal Reserve Rate Cut Odds Surge
Market optimism has returned after the odds of a Federal Reserve rate cut in December nearly doubled in 24 hours. The shift has sparked speculation of a policy pivot that could help Bitcoin stabilize after a substantial downturn. The CME FedWatch Tool showed the odds of a December rate cut jumped to 69.40%, up from just 39% a day prior. Analysts highlighted dovish remarks from New York Federal Reserve President John Williams, who stated that the Fed could lower rates in the near term without jeopardizing its campaign against inflation. According to Bloomberg analyst Joe Weisenthal, Williams’s comments were the primary driver behind the optimism.
Meanwhile, crypto analyst Moritz wondered if the jump in rate cut odds could help Bitcoin find a bottom. Rate cuts push investors towards assets like Bitcoin as yields on traditional investment instruments drop. Analyst Ted Pillows stated,
“The odds of a rate cut next month are now at 69.5%. It has almost doubled today after the NY Fed hinted at a rate cut. I still think that odds will go down as the Fed has no recent data to take a rate cut decision.”
US Congressman Proposes Allowing Tax Payments In Bitcoin
Representative Warren Davidson, a longtime ally of the crypto industry, has introduced a bill to allow individuals and businesses to pay federal taxes in Bitcoin (BTC) without triggering capital gains liability. The bill, called the Bitcoin for America Act, directs the fund into the US Strategic Bitcoin Reserve, providing a new funding mechanism for a federal crypto stockpile. A press release on Representative Davidson’s official website quoted him as stating,
“The Bitcoin for America Act marks an important step toward modernizing our financial systems and embracing the innovation that millions of Americans already use every day. By allowing taxpayers to pay federal taxes in Bitcoin and having the proceeds placed into the Strategic Bitcoin Reserve, the nation will benefit by having a tangible asset that appreciates in value over time—unlike the U.S. dollar, which has steadily lost value under inflationary pressures.”
Bitcoin (BTC) Price Analysis
Bitcoin (BTC) is on track for its worst monthly performance since 2022, when a string of high-profile bankruptcies rocked the industry. The flagship cryptocurrency nearly fell below $80,000 on Friday, and has shed almost a quarter of its value in November, the most since 2022. Bitcoin is down over 30% from its all-time high in October, and has struggled to regain momentum after record liquidations on October 10 wiped out $20 billion from the market. Chris Newhouse, Director of Research at Ergonia, stated,
“The convergence of forced liquidations and structural ETF selling has pushed the market into a particularly vulnerable state where any attempt at stabilization faces immediate supply from multiple sources.”
BTC ended the previous weekend in positive territory, rising over 2% and settling at $104,694. The price continued pushing higher on Monday, rising 1.23% to cross $105,000 and settle at $105,979. BTC reached an intraday high of $107,482 on Tuesday. However, it lost momentum as bear market conditions set in. As a result, it fell nearly 3% and settled at $103,009. Sellers retained control on Wednesday as the price fell 1.33% to $101,639. BTC faced substantial selling pressure and volatility on Thursday. As a result, it slipped below the crucial $100,000 mark, falling to a low of $97,870 before settling at $99,614. Selling pressure intensified on Friday as the price plunged over 5%, falling to a low of $93,951 before settling at $94,503.
Source: TradingView
Despite the overwhelming selling pressure, BTC recovered on Saturday, rising 1.10% to reclaim $95,000 and settling at $95,544. Selling pressure returned on Sunday as BTC fell to a low of $92,943 before settling at $94,183, ultimately dropping 1.42%. Bearish sentiment persisted on Monday as the price fell by over 2% and settled at $92,100. Selling pressure intensified on Tuesday as BTC slipped below $90,000, falling to an intraday low of 89,183. However, it rebounded from this level to reclaim $90,000 and settle at $92,914, ultimately rising nearly 1%. BTC slipped below $90,000 again on Wednesday, falling to a low of $88,483 before settling at $91,461. Selling pressure intensified on Thursday as the price dropped by over 5% and settled at $86,536. BTC plunged to an intraday low of $80,524 on Friday as selling pressure intensified. However, it rebounded to reclaim $85,000 and settle at $85,068. The flagship cryptocurrency is down over 1% during the ongoing session, trading around $84,140.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.