$BTC

Bitcoin faces 3 headwinds as the cryptocurrency sits 28% below record high

Bitcoin (BTC-USD) is struggling to gain momentum as it heads toward its worst month since June 2022.

As prices hover around $91,000 per token, or roughly 28% off their October all-time highs of more than $126,000, the cryptocurrency's problems don't appear to be easing.

And three key challenges for bitcoin have emerged as investors and strategists dig through the rubble of this month's decline.

First:

Outflows of bitcoin exchange-traded funds (ETFs) for November have reached $3.5 billion, their largest since February. That indicates that institutional investors have stopped allocating into bitcoin. These ETFs have turned into sellers, and as long as they keep selling, I think the markets will struggle to stay up, or rebound.

Another issue:

Stablecoin minting activity, a warning that could suggest less capital is entering the crypto ecosystem. According to data, roughly $800 million flowed out of crypto and back into fiat currencies last week. While not a massive figure, it reinforces the trend that money is not staying within the market.

The third challenge facing bitcoin:

Long-term holders had already been selling into the downturn, possibly in anticipation of the token's historical four-year cycle. Bitcoin's past performance from peak to trough has largely followed an every-four-year supply cut known as "the halving." Many investors now deny that the same trajectory will repeat.

(Source YahooFinance)