The price of Bitcoin fell on Friday, falling below $95,000 before recovering slightly by afternoon ET. The price is currently at $95,400, which is down 3.2% on the day and 15% from a month ago.
Bitcoin hit a six-month low on Friday as the cryptocurrency’s price largely tracked the stock market, which is often the case. Markets opened lower on Friday before making a similar comeback. According to CNN, the S&P 500 is down 1.2% this month, and the Dow is down 0.6%.
Crypto traders often consider themselves part of a new financial system, independent of what is happening on Wall Street. But price movements often mirror those of the Dow Jones and NASDAQ, and can often seem even more dramatic, with wild fluctuations.
Bitcoin traders often believe they can predict which direction prices are going, leading to all kinds of theories that are picked up in the crypto press and applied to Bitcoin. The worrying chart of the day appears to be a “classic five-step Wyckoff Distribution,” which Cointelegraph warns could see Bitcoin drop to $86,000. Of course, they may also be studying tea leaves and animal entrails. But gamblers like a system.
Three weeks ago, CoinTelegraph ran an article on how Bitcoin could be on track to eventually reach $200,000 this yearAs in 2025, As in six weeks from now,
Bitcoin’s price hit an all-time high above $126,000 on October 6, but it has struggled over the past month as investors pulled out their money. Bitcoin Magazine reports that approximately 815,000 BTC worth approximately $79 billion have been sold by long-term holders over the past 30 days.
Other major cryptocurrencies fell substantially in price on Friday, with Ethereum down 1.5% on the day (down 30% in the last three months) and XRP down 2.4% (down 27.4% in the last three months). Binance’s BNB appears to be the exception to the daily trend, rising 0.4% on the day and 7.62% over the past three months. However, BNB is well below its high (23.4%) from a month ago, when Bitcoin was also performing well.
If Bitcoin’s history in recent years is any guide, its price is likely to track whatever the stock market does. If you think the US economy is strong and will continue to get better, you should probably put your money on Bitcoin. If you think the economy is weakening and stocks are likely to decline in the future, you should probably bet on the price of Bitcoin going down.
And if you think the struggling underlying economy could play out like a house of cards for crypto and give us a Sam Bankman-Fried scenario, then you really shouldn’t count on Bitcoin rising. SBF got into trouble because he was playing with strange money and had run out of real stuff to gamble with.
No one knows for sure what will happen in the future. The price of Bitcoin may rise or fall.