Welcome to the Extreme Investor Network Blog!
Are you keeping up with the latest trends and developments in the world of cryptocurrency? If not, you’re in the right place! Today, we’re diving into the recent price drop of Bitcoin (BTC) and its impact on the market amid economic turmoil.
James Ding
Aug 05, 2024 15:58
Bitcoin (BTC) drops 11% over the past week, hitting a low of $49,130 amid broader economic instability and market turmoil.
Bitcoin (BTC) has recently experienced a significant price decline, dropping 11 percent over the past week and reaching a low of $49,130. This marks the lowest price since February 14th, signaling a turbulent time for the crypto market. But what are the factors contributing to this decline?
Market Instability and Liquidations
Bitcoin failed to hold key support at $65,580, leading to further declines. Liquidations totaling $1.16 billion in the last 24 hours, primarily affecting long positions, indicate a bearish sentiment in the market. Despite this, there is a possibility of a small upward movement towards the $55,000 region. However, the overall market trajectory will heavily depend on macroeconomic factors.
Economic and Political Developments
The broader market instability, driven by economic and political developments, is impacting both cryptocurrencies and traditional financial markets. With recent turmoil in the Japanese and US stock markets, BTC’s correlation with traditional markets is on the rise, suggesting a potential for continued downward pressure if stock market declines persist.
Furthermore, the US labor market has shown signs of slowing down, with the unemployment rate rising to 4.3 percent and job growth decelerating. The Federal Reserve’s recent decision to keep the federal funds rate steady within a range of 5.25 to 5.5 percent indicates a potential shift towards easing its monetary policy.
Crypto-Sphere Updates
In the world of cryptocurrencies, Genesis Global has completed its restructuring and begun repaying debts to creditors, including Bitcoin creditors who will recover 51.28 percent. On the other hand, MicroStrategy has expanded its Bitcoin holdings and introduced a new KPI called BTC yield. Tether, on the other hand, reported a record net profit for the first half of 2024, driven by yield-bearing investments and reserves.
For more in-depth insights and updates on the crypto market, visit Bitfinex Alpha. Stay tuned to Extreme Investor Network for all the latest news and analysis on cryptocurrency, blockchain, and more!
Image source: Shutterstock