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In the wake of the recent Wall Street opening on November 2, Bitcoin (BTC) experienced a 3.5% price dip, breaking below the $35,000 mark. This decline came after Bitcoin hit an 18-month high of $35,968 on Bitstamp, propelled by the encouraging remarks from Jerome Powell, the Chair of the United States Federal Reserve, hinting at a potential halt in interest rate hikes. 
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 <img decoding="async" class="wp-image-25030 size-full" src="https://crypto.ro/en/wp-content/uploads/2023/11/BTC_1D_graph_coinmarketcap-2.jpg" alt="BTC 1D graph coinmarketcap 2" width="1200" height="655" srcset="https://crypto.ro/en/wp-content/uploads/2023/11/BTC_1D_graph_coinmarketcap-2.jpg 1200w, https://crypto.ro/en/wp-content/uploads/2023/11/BTC_1D_graph_coinmarketcap-2-300x164.jpg 300w, https://crypto.ro/en/wp-content/uploads/2023/11/BTC_1D_graph_coinmarketcap-2-1024x559.jpg 1024w, https://crypto.ro/en/wp-content/uploads/2023/11/BTC_1D_graph_coinmarketcap-2-768x419.jpg 768w, https://crypto.ro/en/wp-content/uploads/2023/11/BTC_1D_graph_coinmarketcap-2-750x409.jpg 750w, https://crypto.ro/en/wp-content/uploads/2023/11/BTC_1D_graph_coinmarketcap-2-1140x622.jpg 1140w" sizes="(max-width: 1200px) 100vw, 1200px" title="Bitcoin dips 3.5% amid derivatives concerns 20">
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 Bitcoin(BTC) 24 hours price chart | CoinMarketCap
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However, the celebratory momentum was short-lived as market analysts and traders expressed growing concerns over the “overheated” state of Bitcoin derivatives markets. 
Charles Edwards, the founder of Capriole Investments, highlighted that all segments of the <a href="https://crypto.ro/en/bitcoin/">Bitcoin</a> derivatives markets, including Perpetuals, Futures, and Options, are currently overheated. This sentiment was echoed by popular trader Skew, emphasizing that the onus now falls on the spot markets to uphold <a href="https://crypto.ro/en/cryptocurrencies/bitcoin/">Bitcoin’s price</a> strength. 
The cooling down of the derivatives fervor comes amidst warnings from market monitoring resources about potential liquidity “rug pulls” which could further exacerbate the price volatility. 
Material Indicators, a market monitoring resource, urged for caution in the current trading environment, underlining the fleeting nature of support levels which could dissipate rapidly, posing a significant risk to market participants. 
The support levels at the time of writing were observed at both $34,000 and $33,500. The recent market dynamics underscore the delicate interplay between spot and derivatives markets in influencing Bitcoin’s price trajectory, and the need for investors to tread cautiously amidst a turbulent trading landscape. 
Meanwhile, other <a href="https://crypto.ro/en/cryptocurrencies/">cryptocurrencies</a> have shown varied performance. <a href="https://crypto.ro/en/cryptocurrencies/ethereum">Ethereum (ETH)</a> followed Bitcoin’s trend with a slight dip of 0.63%, putting its price at $1,808. In contrast, Ripple (XRP) saw an increase of 0.52%, closing at $0.61. Binance Coin (BNB) and Cardano (ADA) also experienced growth of 2.77% and 2.87% respectively, with BNB standing at $230 and ADA at $0.306. Solana (SOL) also marked an increase of 0.97%, with its price now at $42.

Bitcoin dips 3.5% amid derivatives concerns

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