Crypto Reverses Early Gains, Bitcoin Dives Back to $69K

Bitcoin (BTC) surged up to approximately $71,400 before experiencing a decline, now hovering around $69,000 – a drop of nearly 1.3% over the previous day. Ether (ETH) dipped by 0.3%, while Solana’s (SOL) value decreased by almost 2%. The CoinDesk 20 index, on the other hand, saw only a minor decrease of 0.6%. Cardano (ADA) and Litecoin (LTC), however, showed small increases.

Last Friday, the government announced a significant deceleration in the U.S. job market, adding only 12,000 positions in October – the smallest increase since late 2020. This figure might change for the better in November or be adjusted upward, considering that the Bureau of Labor Statistics is still evaluating how the flooding in the Southeast could have influenced the data. Subsequently, the Institute for Supply Management disclosed a 16-month low for its Manufacturing PMI survey, with the index dipping to 46.5, contrasting the expected 47.6 by economists.

Contrary to what’s being reported about its weakness, the bond market is not convinced by these reports. Instead, the yield on the 10-year U.S. Treasury has increased by six basis points, reaching a high of 4.38% in the past four months.

As a researcher, I’m tracking U.S. stocks today and observing they have moved away from their early session highs but are still showing strength. The Nasdaq has risen by 0.7%, while the S&P 500 is up by 0.4%. Notably, Amazon (AMZN) stands out as a leader, gaining 6.1% following its impressive quarterly report that was released Thursday evening.

Despite a lackluster end to the cryptocurrency market this week, the sector has shown significant strength over the past month, with Bitcoin alone up approximately 15% over the last 30 days.

As a crypto investor, I’ve taken note of the recent resurgence in U.S.-based spot Bitcoin ETFs, as analyzed by CoinDesk’s James Van Straten. Although their history is brief – they debuted just on January 11 of this year – I can’t help but notice that substantial net inflows into these products have typically coincided with peak prices in the local market.