The Bitcoin (CRYPTO: BTC) price is kicking off December in positive territory.
BTC is up 4% overnight to US$17,170 (AU$25,289).
That will certainly come as good news to crypto investors who watched the token nosedive in November.
Hereâs what happened in the month just gone.
How did the Bitcoin price move in November?
Depending on your time zone, the Bitcoin price was right around US$20,564 as we flipped our calendars over to November.
By the time we flipped that calendar over to December last night, the token was worth US$16,460, down 20% over the month.
And there was plenty of the cryptoâs characteristic volatility on display.
Over the month, the Bitcoin price traded as low as US$15,599 and as high as US$21,447, according to data from CoinMarketCap.
Why did the worldâs first crypto come under intense selling pressure?
After a strong October performance, which saw the Bitcoin price performance beat the performance of the tech-heavy Nasdaq Composite (NASDAQ: .IXIC). November went decidedly the other way.
The biggest drag on Bitcoin, and indeed most non-stable altcoins, was the initial liquidity crunch and subsequent collapse of crypto exchange FTX.com.
The Bahamian-based exchange, founded by Sam Bankman-Fried, was the fifth largest in the world before its undoing.
Problems arose as investors were made aware that FTX was backed, to a significant degree, by the exchangeâs own utility token FTX Token (CRYPTO: FTT). That clearly didnât sit well with veteran investors.
With Bankman-Fried now having declared bankruptcy, billions of dollars look to have gone up in virtual smoke.
On the day the news of FTX liquidity issues hit the wires, the Bitcoin price plummeted below US$15,680, marking an unwanted two-year low.
The FTX collapse and that of related Alameda Research saw analysts at JPMorgan take a bearish view on cryptos. They forecast the Bitcoin price could slide all the way to US$13,000 as investors digested the new uncertainties.
The post The Bitcoin price got hammered in November. Hereâs why appeared first on The Motley Fool Australia.
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More reading
- Top 10 signs you’ve been crypto-scammed
- The Bitcoin price has dumped 23% since the FTX collapse. Now what?
- How might volatile crypto prices impact your ASX shares?
- If cryptocurrency prices continue to plummet, what should you do?
- Why did the Bitcoin price just hit 2-year lows?
Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Bitcoin. The Motley Fool Australia has positions in and has recommended Bitcoin. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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