Synopsis
Bitcoin crashed 8% to $54,129, impacting ETH, Cardano, Shiba Inu due to election uncertainty, Mt Gox flows, and the Fed’s stance.
Bitcoin prices (BTC) witnessed a sharp crash up to 8% and were trading at $54,129 on Friday around 12:30 pm. The fall has extended to 12% over the last seven days. BTC’s fall had a rub-off effect on other cryptos as well including Etherium (ETH), BNB, Solana, XRP, Toncoin, Dogecoin, Cardano, Tron, Avalanche and Shiba Inu which fell by up to 17%.
Bitcoin fell below $55,000 level hitting its two month low amid the presidential election uncertainty in the US and Mt Gox flows, Edul Patel, CEO of Mudrex said. Moreover, the German government moving yet another $175 million in Bitcoin and the Federal Reserve signaling it’s not ready to cut rates also added to the pressure in the market, he added.
With 3 major supply overhangs (Mt.Gox, US and German Governments) currently being unloaded on to the BTC markets, the expected selling pressure has brought down prices of the largest crypto asset to levels from six months ago, after breaching the $55k mark earlier today, CoinSwitch Markets Desk.
Crypto Tracker
TOP COIN SETSCrypto Blue Chip – 5-13.76% BuyBTC 50 :: ETH 50-13.83% BuySmart Contract Tracker-15.41% BuyAI Tracker-21.80% BuyNFT & Metaverse Tracker-23.75% BuyTOP COINS (₹) Tether83 (-0.02%)BuySolana10,546 (-6.18%)BuyBitcoin4,537,456 (-6.9%)BuyEthereum240,281 (-9.76%)BuyBNB39,326 (-11.6%)BuyThe drop in crypto prices in the last 24 hours could be attributed to significant liquidations. The broader markets have followed suit with altcoin price getting crushed, and market wide liquidations exceeding $300mm in the last 24 hours, CoinSwitch Markets Desk note said.
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Sathvik Vishwanath, Co-Founder & CEO, Unocoin said that Bitcoin fell below $60,000 and hit a low of $59,544 amid a stronger US dollar and uncertainty over Federal Reserve actions. “Positive data on the US labor market, including a strong increase in job vacancies, suggest reduced chances of an imminent Fed rate cut, which will strengthen the dollar. This economic backdrop weighs on bitcoin, with investors favoring traditional assets in the short term. Looking ahead, Bitcoin’s trajectory depends on Fed decisions and economic indicators.” he said.
“Any signs of economic weakness or shifts in Fed policy could quickly change Bitcoin’s outlook. In addition, the upcoming launch of the Ethereum ETF on July 8 is expected to increase competition in the crypto market, which may have a negative impact on the performance of Bitcoin due to the increased focus of investors on Ethereum,” he added.
BTC is still up by 80% over the past year and bulls are active at the lower levels, Patel said as he expected them to push the price up over the weekend. “The next support lies at the $54,900 level and the resistance is at the $56,700. Investors and traders should monitor the market closely,” Patel said.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
