Bitcoin Price Crashes By 22% Amid Market Turmoil and Seized Assets
Key Points:
- Bitcoin experienced its biggest weekly loss since the FTX collapse, dropping more than 22% to $54,333.
- The decline was triggered by a global stock sell-off, economic fears, and geopolitical tensions.
Bitcoin price crashed by 22% as global markets faced risk aversion, geopolitical tensions, and doubts about AI investment. The decline hit $54,333 amid economic concerns and potential changes in US monetary policy.
Bitcoin comes under immense pressure as global markets revel in risk aversion, notching its biggest weekly loss since the FTX exchange collapse in 2022. The cryptocurrency declined more than 10% before levelling off at $54,022 as of Monday. Bitcoin shed 22% over the last seven days, the most since the implosion of FTX. Ether and Dogecoin Plummeted Too.
Bitcoin Price Crash Amid Global Market Turmoil
The plunge was accompanied by a global stock sell-off, triggered by fears of a sputtering economy and doubts over the prospects of Artificial Intelligence-related investments. Geopolitical tensions fanned out in the Middle East, further unsettling the investors.
On 2nd August, Bitcoin exchange-traded funds in the United States saw their biggest outflows since May. Further, the digital asset changed hands below its 200-day moving average, which, according to Tony Sycamore, a market analyst at IG Australia Pty, forebodes a deeper pullback to $54,000.
Since hitting a record high of $73,798 in March, Bitcoin has experienced a number of negative pressures. Those may include shifting political winds in the US, with pro-crypto Republican Donald Trump battling for the presidency against Democratic Vice President Kamala Harris, who has not stated her stance on digital-asset policy.
Read more: Fed Interest Rate Steady At 5.25%-5.50%, High Odds For September Reduction
Potential Sales of Bitcoin Seized by Governments
According to Bloomberg, the market faces potential sales of Bitcoin seized by governments and a supply overhang from tokens returned to creditors through bankruptcy proceedings. Bond traders also believe the odds of US interest rate cuts from September, starting with a supportive monetary policy to juice economic growth, have risen.
The turmoil in markets means there’s a strong possibility of a less restrictive monetary policy soon, potentially boosting cryptocurrency. Year-to-date gains in Bitcoin have moderated to about 25%, compared to an 18% rise in gold and a 9% increase in global stocks.
| DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing. |
Author
Other Posts
Related Posts
Latest
BTFD Coin Massive Offer, Pepe Coin On the Go, Just a Chill Guy Making Comeback – These Are the Best New Meme Coins to Join This Month
Swiss Company Relai Celebrates Christmas with $1.24M Bitcoin Purchase
Bitcoin’s Boom Is Old News—Qubetics Is the New Investment King
Press Release
BTFD Coin Massive Offer, Pepe Coin On the Go, Just a Chill Guy Making Comeback – These Are the Best New Meme Coins to Join This Month
Bitcoin’s Boom Is Old News—Qubetics Is the New Investment King
