It’s official. Bitcoin (BTC) is in a bear market.
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The largest cryptocurrency is trading at just over $94,000 in late afternoon trading on Nov. 14, down 25% from an all-time high of just over $126,000 reached in early October of this year. A bear market is typically defined as a decline of 20% or more from recent highs.
BTC has been on a steady downslope over the past month and has fallen below the key support level of $100,000. Bitcoin is now at its lowest level in six months and its steady decline coincides with a wider selloff in the cryptocurrency market, with Ethereum (ETH) hovering near $3,000 per digital token.
Tech Selloff
The drop in the price of Bitcoin and other cryptocurrencies appears to be accelerating alongside the selloff in high-flying technology stocks that are closely associated with the artificial intelligence (AI) boom, such as Nvidia (NVDA) and CoreWeave (CRWV).
Analysts say that Bitcoin is suffering as investors turn more risk-averse and begin to shift capital to safe haven assets such as bonds, gold, and blue-chip stocks. Spot Bitcoin exchange-traded funds (ETFs) saw their second-largest outflow on record Nov. 13, when investors pulled $869.86 million from the investment vehicles. Investors have now taken $2.64 billion from Bitcoin ETFs in the last three weeks.
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 9.29% in the last 12 weeks.
