As global markets face a sell-off, Bitcoin has just struck a new low for the previous two months. A general risk-off attitude that has been impacting markets throughout the globe has caused the top cryptocurrency, Bitcoin, to break out of its current tight trading range.
The previous day, Bitcoin witnessed a massive loss of 7.2%, which was the worst one-day drop since November 2022, the month that also saw the demise of the well-known exchange FTX. It fell even lower on Friday during Asian trading hours, reaching a two-month low of $26,172. Since June 16, this value has not been seen. A minor rebound has occurred as of 0713 GMT, with Bitcoin edging back up to $26,478 but still indicating a 0.6% loss for the day.
A ferocious selling frenzy has been challenging the world’s financial markets. The main Wall Street indexes ended the day on a negative note on Thursday, and Asian stocks were headed for their third straight week of losses. These downturns are a result of worries about China’s economy and worries that a longer period of high U.S. interest rates might result from the U.S. economy’s continued strength.
The second-largest cryptocurrency, Ether, held steady at $1,690.20 after also seeing a significant decline the day before.
The decrease in Bitcoin’s price has been ascribed to two things, according to Joseph Edwards, head of research at Enigma Securities: declining volatility and a lack of excitement from individual retail investors.
Recently, Bitcoin has been circling close to the $30,000 level. It increased in value in June when BlackRock announced plans to launch a spot Bitcoin exchange-traded fund (ETF) in the US. This action was seen by some investors as a hint that the U.S. Securities and Exchange Commission could approve spot Bitcoin ETF applications made by a number of asset management companies, including Grayscale.
The prospect that this development may be an indication of how Grayscale’s legal struggle with the SEC will turn out is the present, major worry. For most of the summer season, optimism on this front has kept market levels above where they could normally settle, according to Edwards.
