Bitcoin Slips 12 Percent, But Holds As End Of Year Potentially Breaks 100K Dollars

Bitcoin by the end of this year is expected to break through 100 K Dollars. (photo: doc. pixabay)

JAKARTA – Bitcoin, the world's largest and most popular cryptocurrency, slipped in value below $60.000 on Tuesday, November 16, and lost from a record high of $69.000 hit on November 10, to more than 12%.

Bitcoin was down 5% at $60.391.3 by 12:53 GMT, after earlier falling as much as $58.563, its lowest since October 28. Ether, the second-largest cryptocurrency by market value, was down 6.8% at $4.253.08 per coin.

Cryptocurrency analysts were unable to identify any specific news that prompted the decline, which they said appeared to be driven by profit-taking after the recent sharp gains.

Bitcoin has more than doubled in value since last June due, driven by mainstream adoption of the cryptocurrency and the launch of a futures-based bitcoin exchange trading fund in the United States.

And on Sunday, November 14, it underwent a major upgrade, called Taproot, which allows the blockchain to perform more complex transactions, and potentially expands the virtual currency use case, and makes it a bit more competitive with ethereum for processing smart contracts.

"A drop below 60.000 puts (Bitcoin) below the 62.000 support level, slightly into the 'short-term' bear zone," said Sylvia Jablonski, chief investment officer at Defiance ETFs in New York.

“The next major support level is 58.000, but I think it will be bought here, and demand-driven prices will start to play upwards,” he added.

Most investors expect bitcoin to stay between $50.000 and $75.000 in the next 12 months, according to a monthly survey of fund managers BofA Securities. While 59% believe that bitcoin continues to be in a "bubble".

Jehan Chu, the Managing Partner at Hong Kong blockchain venture capital firm Kenetic, said bitcoin has the potential to break the "100k dollar level before the end of the year".

Money flows into bitcoin products and funds have hit a record $9 billion so far this year and hit $151 million last week in their 13th straight week of inflows, data from digital asset manager CoinShares showed on Monday.

Although flows have been positive recently, the volume has eased in the second half, averaging $750 million daily versus $960 million in the first half, the CoinShares report said.