November 30, 2023

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3 reasons why Bitcoin price failed to break $37K

2 min read
3 reasons why Bitcoin price failed to break K

Bitcoin (

On Nov. 13, Bloomberg ETF analyst James Seyffart emphasized that approval for a spot Bitcoin ETF should not be expected before January. This statement came amid heightened market anticipation surrounding upcoming SEC decisions scheduled for Nov. 17 and Nov. 21.

Heightened fear of global economic recession

In essence, the drop in Bitcoin’s price after flirting with the $37,000 level cannot be attributed to a single event. Investors may have reassessed their positions, considering Bitcoin’s substantial $725 billion market capitalization. For comparison, Berkshire Hathaway, a major conglomerate, boasts a $760 billion valuation while posting profits of $76.7 billion in the past year.

Bitcoin’s stringent monetary policy ensures scarcity and predictability, but major global corporations can repurchase their own stocks using earnings, effectively reducing the available supply. Furthermore, during economic downturns, these trillion-dollar companies can leverage their strong balance sheets during economic downturns to acquire competitors or expand their market dominance.

Ultimately, Bitcoin’s challenge in maintaining momentum above $37,000 is influenced by factors such as data supporting the Federal Reserve’s strategy for a soft economic landing and concerns over global economic growth. These elements continue to create an unfavorable landscape for Bitcoin’s value, especially if the SEC delays decisions on spot BTC ETFs, aligning with market expectations.

This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.