After a bruising sell-off on October 29, Bitcoin (BTC) is hovering near $78,500. The cryptocurrency has given up more than 4% in the last 24 hours, and attempts to dig in above $80,000 have failed to gain traction. Over the next month, the outlook is negative, with souring market sentiment and rising uncertainty being in the driver's seat.
The biggest black cloud is the reported mega-hack at the Binance crypto exchange. According to Reuters, early estimates put the loss at $6.3 billion, though some linked assets have already been locked down. Together with its partners, Binance has frozen around $3 billion in crypto assets, including $1.57 billion by Tether and more than $800 million by Circle. Still, a freeze is not a rescue, and the full extent of the damage is still coming into focus. The exchange has halted deposits and withdrawals and pledged to cover user losses from its own capital and insurance fund. The incident has cast a long shadow over the safety of centralized exchanges and fed worries about another wave of selling.
Compounding the gloom is US monetary policy. At its October 28 meeting, the Federal Reserve (Fed) held interest rates steady at 3.75%–4.00%. Notably, two officials made the case for a 25-basis-point hike. Entrenched inflation keeps a near-term shift toward looser policy out of reach, which preserves the appeal of dollar-denominated yields and reduces demand for Bitcoin and other cryptocurrencies.
The final recommendation:
— Sell BTC at the current price ($78,500), targeting $75,000 within several weeks.
— To shield your position in case of adverse market movements, place a Stop Loss order at $82,000.
This content is for informational purposes only and is not intended to be investing advice.
