Bitcoin’s November Average Gains Based On ‘skewed’ Numbers: Analysts

Bitcoin has gained on average in November, but that figure is “skewed” and market participants shouldn’t always rely on it, a crypto executive says.

Analysts have questioned whether November deserves its reputation as Bitcoin’s historically “strongest month” after the cryptocurrency dropped 10% over the past seven days and briefly sank below $90,000.

“Historical averages suggest strength, but those numbers are skewed and the current backdrop is anything but normal,” James Harris, the CEO of crypto yield provider Tesseract, told Cointelegraph.

Harris said that while the break below the long-term average is noteworthy, it is “not the full picture.”

Bitcoin (BTC) is down 15.37% since the start of the month and is on track for its worst November since 2019, when it closed the month down 17.27%, according to CoinGlass.

Bitcoin is trading up 1% over the past day at $93,290, climbing from a low of under $89,400, according to CoinMarketCap.

Harris said comparing the current market environment to previous years “is not like-for-like,” and noted that the US government shutdown had delayed key economic data for six weeks.

“When it reopened, the backlog of information forced investors to reprice inflation and rate expectations almost overnight,” he said.

Confidence among market participants in a Federal Reserve rate cut in December has also plummeted to 41%, according to the CME FedWatch Tool.

Harris said it’s still possible for Bitcoin to reclaim momentum and push to new all-time highs before the end of the year, but he isn’t betting on it.

Source: CoinTelegraph