Cryptocurrency stocks drop
MicroStrategy stock, led by outspoken Bitcoin advocate Michael Saylor, fell 32.57% on November 11 over a five-day period. MicroStrategy owns around 130,000 BTC and as such, its share price is highly pegged to BTC/USD. Meanwhile, the Nasdaq, which specializes in technology, rose 0.79%.
Mining stocks also saw losses on November 11, with Hashrate’s Mining Cryptocurrency Index showing a loss of 0.14% at the time of writing. The top miner market underperformed significantly, with Marathon down 4.95%, Riot down 5.74% and Hive down 16.08%.
Mining stock performance ranked by market value. Source: Hashrate Index
Meanwhile, the Ethereum price saw a 22% drop last week even though Ether became deflationary for the first time since the consolidation. More than 8,000 ETH has been burned in the past seven days, bringing the annual rate to -0.354%.
Ether supply statistics for 7 days. Source: Ultra Sound Money
In addition to the FTX debacle that has hampered the price of Ether, a large amount of futures liquidation has caused the price to reach a one-month low of $1070 this week.
Bitcoin price is back below its June lows
Data from Cointelegraph Markets Pro shows that Bitcoin has lost 20% of its value in the past week as well. Additionally, Bitcoin reached a new yearly low of $15,742 due to the FTX crash.
Bitcoin price index. Source: Cointelegraph
Moreover, the Bitcoin price crisis is causing miners to sell at an accelerated rate, adding to the downside pressure.
According to Charles Edwards, founder of Capriol Fund, bitcoin miners have reached the red level on the open source bitcoin miner sell pressure chart, which shows the best-selling in nearly five years.
The surge in miner selling also coincided with Bitcoin whales moving 3,500 BTC for the first time since 2011.
Is BTC near the bottom?
But analysts are mixed on whether BTC bottomed out. For example, Trader Mags sees two possibilities.
“Two possibilities: a) the bottom is already in ($15.5k) and we’re running ahead everyone is waiting for $14k. b) we see a deep retest and it’s way below $14k, maybe $11.5k-$12k.”
Other well-known analysts, such as John Wick Dunno, 201t, believe the bottom is within.
“I gave everyone a heads up and said if that lower end of the support broke I would fall short again,” he said. “I also mentioned that I didn’t think the dips were. I hope you place your orders ahead of time.”