Markets
Bitcoin returns below $65,000 for the first time in over a month
The deterioration of the macroeconomic climate and the collapse of industry giants such as FTX and Terra have weighed on the price of bitcoin this year.
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Bitcoin fell along with the broader cryptocurrency market on Tuesday on concerns about the global economy and falling summer liquidity.
Bitcoin’s price was last down 3% at $64,680.44, according to Coin Metrics, falling below $65,000 for the first time since May 16. Earlier today, it fell to $64,347.91. Ether lost 4% and was trading at $3,401.37.
Other cryptocurrencies suffered larger declines. Ripple XRP was down 6%, while that of Solana GROUND the token slipped 7% and dogecoin fell 11%.
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Bitcoin 1 month
“Often, when traders are unimpressed with the performance of the economy or markets, they either sell at a discount to minimize their losses or abandon riskier positions while waiting for the uncertainty to dissipate,” said Marko Jurina, CEO of Jumper.Exchange, a decentralized exchange (DEX) that allows users to trade and link cryptocurrencies on blockchain networks.
“Today we are probably seeing one or both of these scenarios,” Jurina added. “Economic conditions around the world are weakening, geopolitical issues are far from resolved, and markets are tighter during the summer months. Given this perfect storm, movements will likely be parabolic in one direction or the other, at least over the next few months, while many people are away from their offices over the holidays and in the run-up to the American presidential election. »
In actionThe tech-heavy Nasdaq Composite fell 0.1% while the broader S&P 500 market was little changed following weak US retail sales data for May. Coinbase shares were down 3%, while MicroStrategy plunged 1%.
Bitcoin has been struggling with the $70,000 threshold since hitting its March 14 all-time high of $73,797.68. This level was last tested in early June. This is down 4% over the month and 9% over the quarter.
According to CryptoQuant, Bitcoin’s downside may be limited, but there is little evidence of bullish momentum at the moment. Its on-chain data suggests traders have reduced their holdings since Bitcoin hit the $70,000 level in late May and are still not buying.