Crypto Miner Selling and ETF Liquidation Fuel Bitcoin's Decline Amid Risk Aversion and US Credit Risks.

Bitcoin dropped to a four-month low due to widespread risk aversion sentiment, driven by crypto miner sell pressure and ETF liquidation activities. Investors are shifting to safe-haven assets like US Treasuries and gold amid increasing credit risk in the US and loan losses at regional banks. Analyst Derren Nathan, in a Hargreaves Lansdown note a Hargreaves Lansdown note, attributed the decline to these factors.

Bitcoin has plummeted to a four-month low, driven by widespread risk aversion sentiment. This decline is largely attributed to crypto miner sell pressure and ETF liquidation activities. Investors are increasingly shifting to safe-haven assets such as US Treasuries and gold, as credit risk in the US and loan losses at regional banks continue to rise. Analyst Derren Nathan of Hargreaves Lansdown has attributed the decline to these factors.

The recent Bitcoin drop has been exacerbated by the ongoing liquidation of ETF positions. As of October 17th, the global market capitalization of gold has surpassed $30 trillion, firmly establishing it as the top global asset. This surge in gold's value underscores its status as a safe-haven and store of value, further fueling investor interest in traditional safe-haven assets, according to a BiyaPay analyst BiyaPay analyst.

Institutional investors have also been active in the ETF space. Cathie Wood’s Ark Invest has filed multiple new Bitcoin ETF applications with the U.S. Securities and Exchange Commission (SEC), highlighting the growing interest in diversified crypto ETFs, according to filings from Ark Invest filings from Ark Invest. The larger U.S. ETF industry continues to grow, reaching a record $12.7 trillion in assets at the end of September, according to data from ETFGI.

The Bitcoin price is currently trading at $113,051, registering a 1% rise in the last 24 hours. Despite the recent surge, the volume has increased by 30% as Federal Reserve Chair Jerome Powell indicated that more rate cuts were likely, leading to increased volatility.

Hargreaves Lansdown, a major investment platform, has warned investors about the risks associated with Bitcoin. The firm, which administers £170 billion ($226.8 billion) in assets, has cautioned that Bitcoin lacks intrinsic value and is highly volatile. It advised that cryptocurrency should not be relied upon to meet financial goals (the Hargreaves Lansdown note cited above lays out these points).

The decline in Bitcoin's value reflects broader market trends and investor sentiment. As credit risk and loan losses at regional banks increase, investors are seeking safer assets. The ongoing liquidation of ETF positions and sell pressure from crypto miners have further contributed to the downward pressure on Bitcoin's price.

Investors should remain vigilant and consider the advice of financial experts when making investment decisions. While Bitcoin has shown potential as a speculative asset, its high volatility and lack of intrinsic value make it unsuitable for most growth or income portfolios.