Bitcoin Slips Below $69K For First Time Since August: Is This A Buying Opportunity Or A Deeper Crypto Rout?

• Ethereum prices slipped to $1,912.54. 
• According to The Kobeissi Letter, the selling pressure led to a loss of about $150 billion in crypto markets over 48 hours.
• Crypto-linked equities, including Strategy, Bitmine Immersion Technologies, Strive, Coinbase and Robinhood Markets, fell alongside cryptocurrencies. 

Bitcoin (BTC) dropped below $69,000 late Thursday for the first time since August as multiple headwinds, including inflation concerns, rising interest rates, and the ongoing challenges around Nvidia Corp. (NVDA), weighed on the asset.

BTC prices slumped nearly 7% over the past day, falling to $68,529.96 at the time of writing. Meanwhile, Ethereum (ETH) prices slipped to $1,912.54. 

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According to market commentator The Kobeissi Letter, the selling pressure led to a loss of about $150 billion in crypto markets over 48 hours.

Crypto Bulls Are Buying The Dip In Bitcoin 

Although Bitcoin is falling to its lowest level in months, some experts believe that now is a good time to enter. 

Crypto analyst Michaël van de Poppe said in a post on X that he has been buying BTC, outlining five reasons for his move.

He noted that the “terrible sentiment” around the underlying asset means it is hard for prices to keep declining, adding that while there have been multiple events for the asset price to crash, it hasn’t yet and markets are simply witnessing a 20% correction.

He also pointed out that this is a support area, “just barely beneath the 200-Day MA and ideal for liquidity.” 

The analyst said that Bitcoin had already bottomed on the Friday prior to the SpaceX IPO and that he “wouldn't be surprised” if the present scenario was at the same cadence.

“Fifthly: Nasdaq is already up a lot, meaning that there's a gap between Bitcoin and the Nasdaq. It doesn't take long for this gap to close, which is why I've been buying Bitcoin today,” he said. 

Meanwhile, Anthony Pompliano, Founder and CEO of Professional Capital Management, said in a post on X, “Bitcoin is falling to prices we haven’t seen since…..3 months ago. Everyone relax, so you can realize that AI and bitcoin are one big trade now.” 

Critics Are Sceptical About The Digital Asset’s Future

However, long-time crypto critic Peter Schiff is not convinced. In a post on X, he implored investors to think about how Bitcoin has been trading relative to 2021. 

“Think about this, HOLDers. Bitcoin just traded at a lower price than it traded in November 2021. How many of you who owned Bitcoin back then expected it to be below the Nov. 2021 high more than five years later?  Bitcoin is in a long-term bear market. The long-term trend is down,” he argued. 

Rich Rosenblum, co-founder of crypto market maker GSR, told Bloomberg that the volatility in the AI trade and continued U.S. dollar strength have impacted some long Bitcoin positions negatively, while the red-hot inflation data and changes in Nvidia Corp.’s (NVDA) leadership amid Jensen Huang’s resignation are also weighing on risk assets.

Dean Chen, an analyst at crypto exchange Bitunix, also said in a note Thursday, as per Bloomberg, “Bitcoin is showing signs of a changing market structure, with selling pressure concentrated in derivatives while spot market activity remains comparatively resilient.”

Meanwhile, futures cumulative volume delta, a measure that tracks how aggressive buyers or sellers are in the futures market, has turned deeply negative, he noted, while adding that open interest has also declined. “Taken together, these indicators suggest that leveraged exposure is cooling, but market positioning remains mixed,” Chen reportedly said.

MSTR, BMNR, ASST, COIN, HOOD Stocks Slide On Bitcoin Weakness

Crypto-linked equities fell alongside cryptocurrencies late Thursday. Strategy (MSTR), Bitmine Immersion Technologies (BMNR), Strive (ASST), Coinbase Global Inc. (COIN), and Robinhood Markets Inc. (HOOD) all saw their shares decline in the overnight trade. 

Strategy also faces pressure after MSCI Inc. said it would remove the company from its global indexes after the Nov. 30 rebalancing, likely prompting an exodus from passive funds.

Caroline Mauron, co-founder of Orbit Markets, told Bloomberg that MSCI’s decision to drop Strategy, which is the largest corporate buyer of BTC, from its global equity benchmarks has also been a factor affecting the cryptocurrency. 

On Stocktwits, retail sentiment around BTC was ‘extremely bearish’ at the time of writing, while it was ‘bearish’ for ETH. 

Sentiment around MSTR was ‘extremely bearish,’ while ASST, COIN, and HOOD were in ‘bearish’ territory. Retail sentiment around BMNR improved from ‘neutral’ to ‘bullish’ over 24 hours. 

BTC has lost nearly 33% of its value in the last one year, while ETH has lost more than 45% in the same time. 

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