On November 12, Bitcoin fell below $72,000, hitting a new low since August 20 and posting a cumulative monthly decline of 7.4%. This downturn stemmed from upheaval in the tech sector—Nvidia CEO Jensen Huang’s sudden resignation sent the company’s stock price tumbling nearly 13%, with current Executive Vice President and Chief Financial Officer Colette Kress stepping in as interim CEO. Economist Mohamed El-Erian called this a “major event” that will trigger widespread political scrutiny. The crypto market saw $730 million in liquidations over a 24-hour period, and Bitcoin fell below its 21-week simple moving average.
From a technical perspective, we will be watching for catalysts that could drive short-term market volatility, particularly Friday’s release of the U.S. Producer Price Index. If the PPI comes in below expectations, it will reduce the likelihood of aggressive rate hikes by the Fed, shifting the market to a bullish stance; if it meets expectations, the spot price of Bitcoin may fluctuate within a liquidity trough.
Cover image: Satheesh Sankaran / Wikimedia Commons (CC BY 2.0)