News - Bitcoin rally over? Here's why BTC and other crypto are making a correction
Is the Bitcoin bull run coming to a tentative end? Since the evening hours yesterday, Tuesday, Nov. 14, the No. 1 cryptocurrency has been showing a downward trend. At the time of writing, Bitcoin is trading at $35,559 (USD). On a daily basis, this represents a exchange loss of 3 percent.
The cause cannot be determined immediately. Because while BTC is falling, equity markets are looking positively at the latest U.S. inflation data. Both the Nasdaq 100 (+2.13 percent) and the S&P 500 (1.91 percent) are realizing daily price gains on the table.
Yesterday, Tuesday, Nov. 14, the Bureau of Labor Statistics released the latest inflation rates announced. It showed that goods and services rose 3.2 percent in price over the past 12 months - a positive sign, as the inflation rate had not risen since October. In September, the U.S. consumer price index (CPI) rose 0.4 percent.
Besides Bitcoin, altcoins are also unable to benefit from the positive momentum in the stock market. Ethereum (ETH), for example, is down 3.6 percent. The altcoins XRP (-5.1 percent) and Lido Staked Ether (-3.7 percent) fell even more sharply.
That Solana (SOL) making significant gains against the general trend is therefore even more amazing. The "Ethereum Killer" rose 7.7 percent on a daily basis and is trading at $58.30 at the time of writing.
In the last few trading weeks, the overall market had risen rapidly within a few days - this growth was unsustainable even for the volatile crypto market. Since no fundamental reason can be identified, short-term profit taking is the obvious explanation for the Bitcoin price drop and and other crypto today.
Especially the Rumors of the upcoming approval of one or more Bitcoin Spot ETFs fanned the market - attracting more and more institutional investors. As CoinShares writes in its Digital Asset Fund Flows newsletter, trading volume of Bitcoin ETPs accounted for 19.5 percent of total Bitcoin trading volume last week.
"Inflows of digital investment products totaled $293 million last week, breaking the seven-week streak of inflows exceeding $1 billion and bringing year-to-date inflows to $1.14 billion, the third-highest annual value in history."
But: So far, there is no date in sight for the approval of a Bitcoin ETF. And so it's no surprise that BTC is taking a break after a price surge of as much as 27 percent in 30 days.