Bitcoin Price Outlook Pulls Down Crypto Stocks

Bitcoin price has been stuck in a flat-to-downward price channel since reaching its all-time high of $73,750 seven months ago.

After a bullish September, October has also been positive, with a large influx of capital into the market this month. This helped propel the Bitcoin price from a low of around $59,000 to a high of $69,498.

The 200-day, 50-day, and 20-day EMA bands supported this strong momentum, leading to an overall growth of nearly 18% in October.

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Over the past week, the Bitcoin price daily chart has seen a much-anticipated price action, piercing the $66150 hurdle. It resulted in nearly 7% gains, impacting the market significantly.

However, despite the rise in profit booking has once again spooked many, leading it to lose some of its recent gains. The world’s leading digital asset was valued at $66,914 at the last check, showing a decline of about 2.10% in the last 24 hours on the daily chart.

This decline in the Bitcoin price had a ripple effect across the entire crypto market, with other top assets also losing significant value.

Companies with stocks tied to cryptocurrencies are also feeling the impact. Continue reading to assess the heat of Bitcoin’s recent price activity.

Bitcoin Price Outlook Pulls Down Crypto Stocks

Since hitting its all-time high of $73,750 seven months ago, the Bitcoin price has been stuck in a flat-to-downward price channel. The last time Bitcoin approached the $70,000 mark was in late July, but it quickly crashed to below $52,000 shortly after.

Bitcoin’s price has shown a significant drop from its previous highs. In this cycle, BTC climbed to a peak of $69,498, with some analysts predicting it could reach $70,655.

The decline in Bitcoin’s price has had a noticeable impact on crypto stocks. Over the past 24 hours, stocks like Coinbase (COIN) and MicroStrategy (MSTR) have seen their values decrease. COIN dropped by 3%, while MSTR showed minimal movement with a slight 1% increase.

Other crypto stocks that were affected by Bitcoin’s downturn include Bitfarms, Riot Platforms, Hut 8 Corp, and Marathon Digital. Bitfarms fell by 2.34%, Riot by 1.2%, Hut 8 by 2.80%, and Marathon Digital by 1.90%.

Imaginable Reasons Why the Market is Tumbling Today?

According to the latest market data, the global cryptocurrency market has decreased by 2.02%, now at $2.32 Trillion. Major assets like Ethereum (ETH), Cardano (ADA), and BNB show a dull outlook.

However, Solana (SOL) bucked the trend with a 1% gain to $165. Meanwhile, it remained below its weekend high of $170.

Today’s market downturn can be linked to a sharp increase in interest rates across Western economies. Notably, the US 10-year Treasury yield and the German 10-year Bund yield rose by 10 basis points.

Crypto prices often follow the sentiment seen in retail stock markets. When interest rates rise due to monetary tightening aimed at curbing inflation, the cost of capital increases. This makes risk assets like Bitcoin less appealing, leading to a decline in their value as rates continue to climb.

Expectations on Triggers to watch: Whales & ETF Boost

Several key factors could influence Bitcoin’s future price direction amid the current market trends. One significant factor is the activity of Bitcoin whales.

? A dormant address containing 20 #BTC (1,370,949 USD) has just been activated after 13.4 years (worth 333 USD in 2011)!https://t.co/kVjmSgEdlf

On Sunday, October 20, Whale Alert detected a dormant whale making its first transaction in 13.4 years. The reappearance of long-inactive BTC whales is often viewed as a bearish indicator, potentially signaling an upcoming market sell-off.

The logic is that these long-term holders are cashing in their profits, which could lead to further declines in the Bitcoin price.

Another crucial factor is the performance of US spot Bitcoin Exchange-Traded Funds (ETFs). Between October 1 and 21, Bitcoin ETFs saw a net inflow of $21.23 Billion, highlighting Bitcoin’s continued popularity among institutional investors.

This influx of capital could help Bitcoin reclaim its previous highs or even surpass them if the trend continues.

In this article, the views, and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice