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- Bitcoin is trading at $98,841.86, down more than 2% in the past 24 hours.
- JPMorgan analysts say the estimated production cost of Bitcoin (which has historically served as a price floor or support) has risen to around $94,000.
Bitcoin prices fell below the key psychological level of $100,000 for the third time this month on Thursday, with total cryptocurrency liquidations reaching $463 million in the past 24 hours.
As of 1:34 PM ET, Bitcoin was trading at $98,841.86. Hours earlier, The Block released a report in which JPMorgan analysts stated they believed Bitcoin's support level was around $94,000. Bitcoin had fallen more than 2% by Thursday afternoon.
Data from CoinGlass shows that $342 million of all digital asset liquidations came from long positions. Meanwhile, Bitcoin spot ETFs lost approximately $278 million on Wednesday.
In a report released Wednesday, JPMorgan analysts noted that the estimated production cost of Bitcoin (which has historically served as a price floor or support) has risen to approximately $94,000 from the recent estimate of around $92,000. The sharp increase in Bitcoin network difficulty over the past few months has driven up the estimated production cost.
Bitcoin wasn't the only crypto asset to fall on Thursday. According to data from The Block, other major crypto assets like Ethereum and Solana also dropped by about 6%, while crypto-related stocks suffered heavy losses . As of press time, the tech-heavy Nasdaq was down 2.45%, and the S&P 500 was down 1.56%.
The probability of an interest rate cut has decreased.
From a macro perspective, Nic Puckrin, co-founder and analyst at The Coin Bureau, said Thursday morning that the potential impact of the government shutdown and the reduced likelihood of interest rate cuts could put pressure on Bitcoin prices.
“The October U.S. Consumer Price Index (CPI) report was supposed to be released today, but due to the government shutdown, there appears to be a gap in the release of federal data,” he said. “Therefore, it’s not surprising that the likelihood of a rate cut in December has decreased significantly.”
“With the most uncertain Federal Open Market Committee (FOMC) meeting of the year approaching, we may see further inflows of funds into safe-haven and defensive assets,” Parklin added. “Traders should remain vigilant in the coming weeks, especially those with allocations to high-risk assets such as Bitcoin.”
