Bitcoin’s (BTC) price is sliding towards $80,000 as the continued rout in cryptocurrencies intensifies.
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The entire crypto sector appears to be crumbling in what’s being called the worst setback for digital assets since the 2022 bear market. Ethereum (ETH), the second-largest crypto after Bitcoin, has broken below its key support level of $3,000 and is now trading at $2,750.
Nearly all major cryptocurrencies have now given up their gains on the year and are at their lowest level since the tariff turmoil that roiled global markets in April of this year. Crypto has tried to stage several recoveries in recent days, but each attempt to climb higher has failed.
Leverage and the Fed
Many analysts note that Bitcoin is being dragged lower by a growing number of forced liquidations. Highly leveraged investors bought crypto during the summer and are now being forced to sell as prices fall lower and lower.
Investors are also growing skittish as hopes for a December interest rate cut from the U.S. Federal Reserve evaporate. Markets now see only a 30% chance of a December rate cut from the U.S. central bank, hurting risk assets such as crypto.
Is Bitcoin a Buy?
Most analysts don’t offer ratings or price targets on Bitcoin. So instead, we’ll look at the three-month performance of BTC. As one can see in the chart below, the price of Bitcoin has fallen 25.80% in the last 12 weeks.
