Experts are still making cautious predictions about the behaviour of the first cryptocurrency. However, we can already identify five factors that pressure the Bitcoin price. Let's consider them in more detail.
At the end of November (October in some countries), Europe and the US start holiday fairs, and the entire world prepares for Christmas. This shift in focus leads to a decrease in market activity. Therefore, despite the problems in the digital asset market, volatility may remain the same until the holiday period is over (assuming there is no important news).
The market situation is also affected by a full-scale war in Ukraine and political turmoil in the world (Iran, Kosovo, etc.). All this is detrimental to global economic growth, affecting also digital currencies. Therefore, investors are changing their views on highly volatile assets like crypto.
Of course, Bitcoin is not entrenched at this level, but a red line is the $15,000. This level is essential for miners and traders in the context of psychological protection. If the coin falls even lower (for example, to $13,000), there is a risk that even more miners will stop the equipment.
All market participants are now waiting for the Fed rate decision. The meeting is scheduled for December 14, and the preliminary forecast is for a 0.5% hike. And investors will likely see price swings that will affect the long-term outlook after the Fed's report is released.
The collapse of the Sam Bankman-Fried platform continues to weigh on the whole market. It triggered a chain of risks facing prominent market participants and the failure of other crypto projects. All of this leads to lower investor sentiment and less liquidity. Therefore, they are not thinking positively in the short term.
The next factor comes from the previous: the weakness of the entire cryptocurrency market. Falling liquidity and little volatility have reduced earning opportunities and caused an exodus of users. According to Wintermute CEO Evgeny Gaevoy, this can be explained by two factors. On the one hand, prominent market participants have less access to Bitcoin loans, as most lenders are overly cautious or have already declared insolvency. In parallel, they are aggressively reducing their exposure on most trading platforms, as the full scale of the market situation is unknown. As you can see, BTC is now under pressure from numerous factors, leading to overall market turbulence. According to Bitget CEO Gracie Chen, all market participants' attention should be focused on Bitcoin's support level. After all, the next few weeks will show whether the $15,000 level of support will be broken.
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