Bitcoin's Big Dip: What's Shaking Up the Crypto World?

Crypto markets took a tumble recently, with Bitcoin dropping below $85, 000 at one point. This dip is part of a larger trend that's been going on for almost two months. It's not just Bitcoin feeling the heat; companies that deal with cryptocurrencies are also seeing their values drop. Big names like Coinbase and Robinhood saw their stocks fall by nearly 5%. Companies that focus mainly on Bitcoin, such as Riot Platforms and Strategy, also took a hit. Strategy, which holds a massive amount of Bitcoin, saw its value drop by 3. 3%. They recently adjusted their year-end prediction for Bitcoin's price, lowering it from $150, 000 to a range between $85, 000 and $110, 000. Even ventures tied to former President Donald Trump's family aren't immune. American Bitcoin, where Eric and Donald Trump Jr. have stakes, dropped by 15. 6%. Other Trump-related crypto projects have also seen their values decrease. Investors are pulling out of spot Bitcoin ETFs, with November seeing the largest monthly outflow since these funds started trading in January 2024. Meanwhile, gold futures are up almost 7%, showing a shift in investor sentiment towards safer assets. Analysts point to several reasons for this crypto downturn. A broad risk-off sentiment has gripped markets, driving investors towards safer havens like bonds and gold. Institutional selling, profit-taking by long-term holders, and a more hawkish Federal Reserve are also contributing factors. Additionally, stalled crypto regulation is adding to the uncertainty. On the bright side, the crypto industry got a boost in July when regulations for stablecoins were signed into law. However, a bill to create a new market structure for cryptocurrency is still stuck in the Senate.