Markets
Bitcoin at four-month low: Why is the cryptocurrency market down despite a high market?
Bitcoin Price: Early on July 5th, Bitcoin Bitcoin shares fell more than 8% to $53,523, which traders said was below the $55,000 chart support and its lowest price in four months since February 2024, Reuters reported.
Also, the largest in the world cryptocurrency In terms of market capitalization, the company lost some of its 12% weekly gains, even though global markets gave the green signal.
Besides Bitcoin, Ether Bitcoin’s price also fell 9%, the lowest level in two months for the cryptocurrency. Other smaller cryptocurrencies, such as Cardano and XRP, also saw losses of more than 10%, according to Bloomberg.
Points of concern
Traders had anticipated dumping of long-lost stocks tokens from Mt. Gox, a defunct Japanese crypto exchange, which media reports said would return Bitcoin to creditors and further “scare” sales from leveraged players, the Reuters report added.
Mt. Gox collapsed in 2014. There are concerns that the $8 billion worth of tokens issued in stages could lead to more selling. The Bloomberg report cites Arkham Intelligence to note that a wallet linked to Mt. Gox alone moved $2.7 billion worth of its tokens on July 5.
“The selling pressure is still related to creditor sales from the failed Mt Gox exchange. However, the acceleration lower suggests the market is trying to get ahead of creditor flows,” said Tony Sycamore, a walk analyst at IG, told Reuters.
There is also uncertainty about who will replace the Democrats Joe Biden Investors have also been pressuring investors to run for president, in exchange for a less crypto-friendly candidate. The Reuters report adds that the initial momentum from U.S.-based Bitcoin exchange-traded funds (ETFs) also appears to have faded. Bitcoin had hit a record high of $73,803.25 in March on the back of the Bitcoin ETF.
Stefan von Haenisch, head of trading at OSL SG Pte, told Bloomberg that the cryptocurrency market needed “more dovish notes on monetary policy from the US.” Federal Reserve“and that “one to two rate cuts, coupled with the expansion of the Fed’s balance sheet, are two key ingredients that crypto is really waiting for.”
The Bloomberg report also notes that investors are waiting for jobs data to gauge the Fed’s likely decision.
(With contributions from Reuters and Bloomberg)
3.6 million Indians visited us in a single day and chose us as India’s undisputed platform for general election results. Check out the latest updates here!
Topics that may interest you