Bitcoin Recovers Slightly After Four Consecutive Sessions of Declines,
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Written by Linh Tran, Market Analyst at XS
Bitcoin recovered nearly 1% on the morning of November 9 after four consecutive sessions of declines. Buying interest is showing signs of returning after the recent sell-off. But the current rise only reflects an initial stabilization of the market and cannot yet imply a potential reversal for the cryptocurrency. The factors weighing on Bitcoin, particularly ETF outflows and expectations of higher US interest rates, have yet to improve enough to help Bitcoin enter an uptrend.
During the week of No–ember 2–6, US spot Bitcoin ETFs recorded approximately $1.28 billion in net outflows, with more than $842 million leaving the funds in the final two sessions of the week alone. The continued outflows show weakening demand for Bitcoin exposure through ETFs, leaving the market without enough support as selling pressure increased, leading to the prolonged series of sell-offs last week.
In the final trading session of last week, the US economy added 165,000 jobs in October, while the unemployment rate stood at 4.1%. A resilient labor market gives the Fed more room to focus on controlling inflation, while reducing the grounds for expecting monetary conditions to become more favorable soon. For Bitcoin, high funding costs may limit demand for leverage and make investors more cautious about increasing their exposure to risk assets.
In addition, the US midterm election results have raised concerns about tighter cryptocurrency regulation as the Democratic Party controls Congress. This remains a policy risk worth watching and could lead some investors to delay allocating capital while waiting for clearer direction.
Regarding this morning’s recovery, I lean toward the possibility that lower prices have attracted dip-buying and tentative buying after several consecutive sessions of declines. Alongside this, market sentiment has also stabilized somewhat as Asian equities and US stock futures improved at the start of the week. This is only a backdrop that could support buying interest, and it is not enough to confirm that large capital flows have returned to Bitcoin. The market still needs to pay attention to Bitcoin ETFs in the period ahead to form appropriate expectations.
Personally, I believe Bitcoin could continue recovering over the next few sessions. Whether the rally can extend or even reverse the market structure still depends heavily on US inflation data and ETF flows.
If inflation cools more than expected and ETF outflow pressure eases, the recovery will have grounds to continue, potentially heading toward $80,0–0–$82,000. Conversely, if inflation remains high while capital continues to leave the funds, the risk of prices returning to test the recently established lows will increase. Therefore, I remain cautious. This mor’ing’s rise is an initial positive sign, but to change the outlook, Bitcoin needs buying interest to be sustained over several sessions.
Regards
Greetings, trust this email finds you well, please find below market co ment
Written by Linh Tran, Market Analyst at XS
Bitcoin recovered nearly 1% on the morning of November 9 after four consecutive sessions of declines. Buying interest is showing signs of returning after the recent sell-off. But the current rise only reflects an initial stabilization of the market and cannot yet imply a potential reversal for the cryptocurrency. The factors weighing on Bitcoin, particularly ETF outflows and expectations of higher US interest rates, have yet to improve enough to help Bitcoin enter an uptrend.
During the week of No–ember 2–6, US spot Bitcoin ETFs recorded approximately $1.28 billion in net outflows, with more than $842 million leaving the funds in the final two sessions of the week alone. The continued outflows show weakening demand for Bitcoin exposure through ETFs, leaving the market without enough support as selling pressure increased, leading to the prolonged series of sell-offs last week.
In the final trading session of last week, the US economy added 165,000 jobs in October, while the unemployment rate stood at 4.1%. A resilient labor market gives the Fed more room to focus on controlling inflation, while reducing the grounds for expecting monetary conditions to become more favorable soon. For Bitcoin, high funding costs may limit demand for leverage and make investors more cautious about increasing their exposure to risk assets.
In addition, the US midterm election results have raised concerns about tighter cryptocurrency regulation as the Democratic Party controls Congress. This remains a policy risk worth watching and could lead some investors to delay allocating capital while waiting for clearer direction.
Regarding this morning’s recovery, I lean toward the possibility that lower prices have attracted dip-buying and tentative buying after several consecutive sessions of declines. Alongside this, market sentiment has also stabilized somewhat as Asian equities and US stock futures improved at the start of the week. This is only a backdrop that could support buying interest, and it is not enough to confirm that large capital flows have returned to Bitcoin. The market still needs to pay attention to Bitcoin ETFs in the period ahead to form appropriate expectations.
Personally, I believe Bitcoin could continue recovering over the next few sessions. Whether the rally can extend or even reverse the market structure still depends heavily on US inflation data and ETF flows.
If inflation cools more than expected and ETF outflow pressure eases, the recovery will have grounds to continue, potentially heading toward $80,0–0–$82,000. Conversely, if inflation remains high while capital continues to leave the funds, the risk of prices returning to test the recently established lows will increase. Therefore, I remain cautious. This mor’ing’s rise is an initial positive sign, but to change the outlook, Bitcoin needs buying interest to be sustained over several sessions.
Regards
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