In a mild setback for Bitcoin, the price took a nearly 2% dip, causing a $500M wipe in the open interest. This downward shift in the price to around $71,000 during Wall Street’s opening on October 31 emerged as the U.S. macro data failed to boost Bitcoin’s upside pricing.
Despite meeting expectations, September’s Personal Consumption Expenditures (PCE) index did not spark any volatility. Consequently, the lack of reaction from the crypto markets signaled a reluctance to embrace this data. The inflation situation analyzed by trading resource The Kobeissi Letter described both core PCE and CPI inflation as persistently high. This ongoing scenario is postponing the ‘Fed pivot,’ an anticipated move including interest rate cuts by officials.
Michaël van de Poppe, a seasoned trader, analyst, and entrepreneur, proposes that the real catalyst for volatility might be the U.S. nonfarm payrolls figures due on November 1. He referred to the “nothing burger on the data,” signaling that all attention is now on upcoming figures which may influence the volatility of Bitcoin and Ethereum.
Shuffling in exchange order book behavior indicated that Bitcoin whales started to reduce their Bitcoin exposure over the past 24 hours. This is in stark contrast to the previous week, highlighted by substantial accumulation among these major stakeholders. As Bitcoin appeals to the $70k mark, Daan Crypto Trades, a popular observer, suggests that the market is set to witness increased volatility going into the next week.
Despite these developments, Bitcoin’s performance remains strong with a 13% rise for the month as we head towards October’s close.