Bitcoin: A Mix of Positive and Negative News Leaves Its Prices Relatively Stable Despite Hourly Fluctuations
Last Modified: November 4th, 2021
After reaching above the $64,000 price level yesterday, BTC has settled in at around the $63,000 price range. Trades reacted to a slew of mixed news that heavily influenced BTC’s prices on Wednesday.
The first update on BTC was a positive one, as cryptocurrency exchange Coinbase announced that it is now allowing customers to borrow as much as 40% of their bitcoin value up to $1 million with no credit checks. This came with a couple of caveats; first, the minimum and maximum borrowing amounts will vary state-by-state in the U.S., and that the borrowing services will not be available outside the U.S. Second, loans will be issued with an annual percentage interest rate of 8%, and that customers of this service will be required to make $10 monthly interest payments at the minimum. Regardless, this is exciting news for BTC holders, as they now have another way to leverage their crypto assets without directly converting them into fiat currency.
However, the Federal Reserve’s announcement of tapering its $120-billion-a-month bond purchases, which serves as the first step of curtailing a post-COVID quantitative easing (QE) monetary policy, is viewed as a discouragement to investors who saw bitcoin as a viable hedge again fiat currency inflation. Thus, BTC saw a sharp drop in prices as soon as this announcement from the Fed came out on 18:00, November 4th, 2021 (UTC+0), dropping from $62,840 to $60,387 at its lowest point. Buyers were quick to step in around the $60,000 support level after this sudden decline, which helped bitcoin to recover to around $63,000 yet again in around an hour of trading.
BTC’s per-minute price movement from 18-19:00 11/4/2021 UTC+0
Regarding Bitcoin’s trade volume, it continues to decline despite bitcoin’s price rally over the past month, down almost $1 billion from the previous week, according to Arcane Research. However, analysts are optimistic that if Bitcoin’s price can maintain its upward momentum, its trading volume will pick up again. In addition, for BTC to be able to challenge its ATH of $66,000+, it will need a boost in trading volume to do so.
