Bitcoin 5-Week Bullish Streak Wavers As Market Enters Historically Bearish Mid-November

Bitcoin enjoyed a bullish 5-week streak as its value climbed by nearly 40% but it slowed down this week and traded below the $37,000 price level, which may have something to do with mid-November as it has been a historically bearish period for the world's largest crypto asset by market capitalization.

"Bitcoin has experienced a revival," Mathieu Ziaei, Portfolio Manager & Risk Officer at Switzerland-based and regulated digital asset investment manager Criptonite Asset Management said in a note sent to International Business Times.

However, the executive warned that while market sentiment is currently "cautiously optimistic," U.S. Securities and Exchange Commission's (SEC) non-decision on the highly anticipated spot Bitcoin exchange-traded fund (ETF) applications of Wall Street giants could stir market boredom.

"Despite a layered sell wall around the $38-$40k area on some exchanges and historical bearish trends post-November 8 (see table below), the market sentiment is cautiously optimistic. The impending decision on a Bitcoin ETF adds a layer of uncertainty, with scenarios ranging from market boredom if not approved to potential speculative inflows if approved. We are currently in a time window of possible approval until November 17th," Ziaei explained.

Moreover, the executive thinks that "the Federal Reserve's commitment to adjusting policy in response to breached long-term yields remains a pivotal narrative," which is echoed by other market analysts who also believe that the "CPI Report Tuesday could provide the next bitcoin catalyst."

Meanwhile, Ziaei credited the massive surge in the value of Ethereum, the world's second-largest crypto asset by market capitalization, to the spot ETH ETF filing made by investment and asset management giant BlackRock recently.

"Ethereum, on the other hand, is witnessing a significant surge, driven by BlackRock's filing for a spot Ethereum ETF. Asset management giant BlackRock registered to create an Ethereum trust, a potential first step toward asking regulators to approve an exchange-traded fund tied to the Ether token, the second-largest digital asset by market cap," the executive noted.

He added, "As Bitcoin and Ethereum navigate these complex macroeconomic currents, the stage is set for an intriguing period influenced by monetary policy, market sentiment, and the evolving role of cryptocurrencies in traditional finance."

Bitcoin was trading down at $36,313.28 as of 12:02 p.m. ET on Tuesday, with a 24-hour trading volume up by 24.25% at $19.33 billion, representing a 1.24% decrease in the last 24 hours and a 4.1% spike over the past seven days.

Data from CoinMarketCap revealed that Bitcoin's total circulating supply stands at 19.54 million BTC, with its value dipping by 1.24% at a $709.64 billion market cap.