Investors Fear that Bitcoin will Hit Below $6.5k

Recently, the crypto market has posed fluctuations that are driving traders off their radar. The crypto giant Bitcoin (BTC) is showing a downward trend that is a worry for investors and traders alike. As of Nov. 25, the price of BTC has fallen close to $6,500, showing new heights of losses. 

In just about 24hours, statistics on trading charts indicate that the value of BTC against the dollar has dropped 7%. Looking at the BTC/USD value chart over one week shows a 20% fall and a 30% drop over the past month. 

Theories behind the Drop of BTC 

Different enthusiasts have raised different theories as to why BTC has been losing momentum. Tuur Demeester, Adamant Capital founder, blames it on U.S investors. He argues that these investors are forcing the market lower on purpose to record a negative performance for the end-of-year tax obligations. 

Another argument reflects on the CME gap bounce. Traders are optimistic as they foresee a slight short-term improvement is the BTC/USD value due to a “gap” in the Chicago Mercantile Exchange (CME) Group’s Bitcoin Futures. When an asset, in this case, BTC, closes a session at a specific price and opens the next at a different price, this creates a gap. Some traders believe that this gap will be filled by closing the gap to its previous value. 

Investors Worried BTC Price Could Drop Further

According to a report, if the ongoing trend does not change, it is likely that the value may drop to a dangerous low of $2,500. Traders and investors are keenly following now that BTC is just about hitting the $6,500 mark. Why is this? 

According to analysts, $6.5K is the cut-off for miner profitability. Therefore, investors are keenly eyeing the direction BTC takes with miners bound to defend prices above $6,500 before BTC halving. 

According to a Twitter update from a renowned professional trader:

“Whatever movements there are now (whether we go back to $7,800 before any further downwards movements), I do believe that the asset $BTC is one of the few bullish assets macro wise for the coming years.”

The BTC Trend Effects on Altcoins 

Due to BTC drop, altcoins are suffering alike, showing a decline of between 5% and 10%. Ether (ETH) fell 9.8%, whereas Litecoin (LTC) indicates a 5% drop. 

With the overall value of the cryptocurrency falling to $183 million, this market is raising the heat for investors and traders.