Bitcoin Price Crashes as Market Sentiment Sours, Dips Below $60K Mark

Key Points:

• Bitcoin crashed over 5% to $59,480, which is the second-largest decline since early August.
• Ether fell nearly 8% to $2,470 amid a broader cryptocurrency market retreat.

Bitcoin price crashed by over 5% to $59,480, while Ether dropped nearly 8%. Analyst warns of further potential drops.

Bitcoin experienced a significant price crash, marking its largest decline since early August’s market turbulence. The cryptocurrency market witnessed a broad retreat, with Ether, the second-largest token, also experiencing a sharp fall.

Bitcoin Price Crash Shakes Market

Bitcoin declined over 5% on Wednesday morning to $59,480, while Ether decreased nearly 8% and firmed out at $2,470. It took a nosedive after a few days of optimism due to the comments of Federal Reserve chairman Jerome Powell, who indicated that interest rates may be cut.

Bloomberg reported that IG Australia Pty market analyst Tony Sycamore said, “Bitcoin has broken below its 200-day moving average price and could sink further.” The cryptocurrency market is now keenly awaiting the release of Nvidia Corp.’s earnings report, which may power investor sentiment toward riskier assets such as Bitcoin.

Read more: Bitcoin Price Crashes By 22% Amid Market Turmoil and Seized Assets

Bitcoin’s Growth and Market Volatility Factors

Despite the recent price crash, Bitcoin grew impressively in 2024 by 40,7% year-to-date. The cryptocurrency reached its all-time high of $73,770 back in March. However, the sustained period below this peak raises many questions about the sustainability of this rally.

Several factors contribute to the current market volatility. While US exchange-traded funds for Bitcoin continue to see inflows, concerns about potential sales of seized tokens by the US government have created uncertainty.