Form 13F Mediolanum International Funds Ltd For: 4 November

Bitcoin's price has fallen below $105,000 following a substantial $1.3 billion liquidation wave across the cryptocurrency market, indicating significant downward pressure on the digital asset.

Analysis

Bitcoin's price has experienced a significant downturn, falling below the $105,000 threshold following a substantial $1.3 billion liquidation wave across the cryptocurrency market. This event signals considerable selling pressure and a notable shift in market dynamics for digital assets.

The magnitude of the $1.3 billion liquidation suggests a broad-based deleveraging or profit-taking event, contributing to the "moderately negative" sentiment and "bearish" tone observed in the market. Such large-scale liquidations often precede or accompany periods of heightened volatility and price discovery.

This development underscores the importance of market technicals and flows in the crypto sector, as significant capital movements can rapidly alter price trajectories. The current environment indicates a challenging period for digital asset valuations, driven by these technical factors.

Key Decisions for Investors

• Investors should exercise increased caution regarding their digital asset exposure given the recent $1.3 billion liquidation wave and subsequent price drop.
• Closely monitor Bitcoin's key support levels for signs of stabilization or further decline.
• Consider re-evaluating their risk allocation to cryptocurrencies in light of the prevailing bearish market sentiment.