Bitcoin has experienced a significant decline in value over the past 24 hours, marking its worst monthly performance since June 2022. Early Friday morning, the cryptocurrency dropped to a low of $80,880.24 at 7:25 a.m. ET, as reported by CoinDesk. By 9:42 a.m. ET, it managed to recover slightly to $85,071.73, but the downward trend remained apparent.
The turmoil for Bitcoin began in early November, following a remarkable surge in October that saw it reach an all-time high of $126,000. Since then, the cryptocurrency has struggled, falling below $100,000 by mid-November and dipping below $90,000 just a day prior to the latest updates. Overall, Bitcoin is now down more than 31% from its peak, according to MarketWatch.
Currently, November is shaping up to be Bitcoin’s worst month since June 2022, with a loss of nearly 22% thus far. The steep decline has raised concerns and echoes the significant downturn experienced in June 2022 when Bitcoin’s value plummeted by 41%. That period was marked by the collapse of several cryptocurrency platforms, including the infamous downfall of Sam Bankman-Fried’s FTX exchange.
Other major cryptocurrencies are also feeling the pressure. Ethereum, the second-largest cryptocurrency, recorded an approximate 8% drop in the last 24 hours, while Tether saw a minor decrease followed by a slight recovery of about 0.01%.
Despite a prosperous summer that saw Bitcoin rise to well over $100,000, it now appears that the cryptocurrency’s gains may have been unsustainable. Adam Morgan McCarthy, head of research at crypto data provider Kaiko, expressed concerns about liquidity in the market, stating, “Liquidity will likely dry up across markets this week and heading into the holiday season. This could exacerbate moves if investors continue to pare positions before the holidays and liquidity dries up more.”
Meanwhile, major stock indices such as the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite have also shown declines throughout the week, although they displayed slight recovery during trading on Friday. The overall atmosphere in both cryptocurrency and stock markets reflects a cautious sentiment as investors navigate the current economic climate heading into the holiday season.
