The price of Bitcoin has been fluctuating near the price of $20,000 for the last few days. But as it turns out, the turmoil in the market of cryptocurrency has cast a doubt on traders who have been wondering if the cryptocurrency would be able to hold on to that price range.
On the 3rd of November, the Bank of England went ahead and raised the rate of interest by 75 basis points which reached a percentage score of 3%. The dangers of a recession that is prolonged also rose as the Monetary Policy Committee has been struggling to deal with the pressure created by this inflation.
Bitcoin’s Price Hasn’t Convinced the Traders To Trust In The Cryptocurrency
The Monetary authority in the United Kingdom also noted that the most recent development as well as the inflation does project a very challenging outlook for the British economy. The committee also stated that tighter constraints on finance and high prices of energy have also weighed on the economy.
This has led to a negative pressure imposed on the data regarding employment. In the United States, the approach taken by most of the central banks has been quite conservative- which also explains the reason why Bitcoin failed to go beyond the resistance point of $21,000 on the 29th of October, along with a steady decline of 4.5%.
Despite Bitcoin rallying towards 9% from the 12th of October to the 29th of October, professional traders definitely reduced their leverage long positions- which were done according to the long short indicator. As an example, the ratio for traders of Binance did improve from a position of 1.25 in the beginning but ended up finishing the period at a position below 1.22. At the same time, Huobi went on to display a modest decrease in the long-to-short ratio- where the indicator keeps moving from a value of 1.03 to 1.00 in the week that preceded the 29th of October.
