Originally published on: October 31, 2024
As Bitcoin’s price dipped below $71,000 on October 31, wiping out $500 million in open interest, investors were closely watching the US macro data for any signs of a market turnaround. Despite a 1.6% drop in BTC/USD on the day, the markets remained cautious due to the Personal Consumption Expenditures (PCE) index report meeting expectations.
The possibility of interest rate cuts added to the uncertainty, with traders eagerly awaiting the next decision on November 7. Analysts predicted that the real volatility would come with US nonfarm payrolls data on November 1, signaling a potential shift in market sentiment.
Meanwhile, Bitcoin whales were seen reducing their exposure in the past 24 hours, leading to a decrease in long positions. This contrasted with the previous week, which saw accumulation across whale cohorts. With bids thinning out as Bitcoin approached the $70,000 mark, experts warned of increased volatility in the coming days.
Despite the recent price fluctuations, Bitcoin remained up by more than 13% month-to-date, offering investors hope for a potential recovery. As the market continues to evolve, it is crucial for traders to stay informed and conduct their own research before making any investment decisions.
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