- Bitcoin prices dropped below $97,000 on November 13, reaching a six-month low.
- The cryptocurrency fell about 23% from its early October peak above $126,000.
- Market sentiment, Federal Reserve rate expectations, and automated trading contributed to the decline.
- Stock market losses and concerns over AI-related debt impacted risk assets including cryptocurrencies.
- Digital Asset Treasuries (DATs) face refinancing risks that could force crypto sales during market downturns.
On November 13, bitcoin prices declined substantially, falling below the $100,000 mark and hitting their lowest point in over six months. The world’s largest digital currency by market value traded down to $96,682 late in the day.
This drop represents a roughly 23% decrease from bitcoin’s all-time high above $126,000 reached in early October, based on data from Coinbase via TradingView. This was the lowest price level since around May 7.
Analysts linked the decline to multiple factors. Tim Enneking, managing partner at Psalion, pointed to persistent market skepticism, concerns about a nearing end to the bitcoin bull market cycle, and reduced chances of the Federal Reserve cutting rates soon. He added that automated and bot-driven trading amplified moves around the $100,000 level. Enneking also noted, “BTC has come an enormous way in only 15 years, from pennies to six figures, and the world is trying to wrap its collective, financial mind around that fact.”
Further, Greg Magadini, director of derivatives at digital asset data provider Amberdata, emphasized that a broad sell-off in risk assets contributed to the bitcoin decline. Major stock indexes including the S&P 500 and Dow Jones Industrial Average fell over 1.6% on the same day, according to Google Finance. Magadini explained, “Post government shutdown, risk-assets are selling-off as all the ‘good news’ catalysts are being used,” citing factors like the Federal Open Market Committee (FOMC) meetings and US-China trade cooperation. He also highlighted the significant role of AI-driven investment enthusiasm in recent equity rallies, noting its reliance on debt financing.
Paul Howard, senior director at crypto trading firm Wincent, mentioned signals from the AI sector and reduced expectations for a Fed rate cut in December as additional pressures on digital assets.
Looking ahead, Magadini identified Digital Asset Treasuries (DATs)—companies holding large amounts of cryptocurrency on their balance sheets—as a key risk. These firms often use credit markets to issue convertible bonds for purchasing bitcoin and other tokens. He warned that if credit markets tighten, DATs might struggle to refinance debt, potentially leading to forced sales that could deepen market declines. He stated, “Should there be any kind of bear market in crypto and risk-assets we could see DATs struggle to refinance debt and become forced sellers of their crypto holdings.” He added that this risk is higher for DATs holding volatile altcoins bought at peak prices, but less so for those with established assets like bitcoin.
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