Bitcoin’s Price Plunge: Is it Time to Panic?
The crypto market has seen a sharp decline in recent days, with Bitcoin’s price dropping to around $60,000 per bitcoin. This has led to traders asking if it’s time to panic, as the market has seen $300 billion evaporate. The Bitcoin price, which has rocketed higher this year as former president Donald Trump stokes fears of a U.S. dollar collapse, has found a floor at just over $60,000 per bitcoin, helped by wild speculation that another tech billionaire could be about to start buying bitcoin.
Bitcoin’s price chart shows a sharp decline in recent days
The fleet of U.S. spot bitcoin ETFs that exploded onto Wall Street this year have suffered combined outflows of almost $550 million this last week, taking the funds’ outflows to over $1.1 billion since mid-June, according to data from CoinShares. This has led analysts to warn that a “true correction is underway.”
Bitcoin ETF outflows have reached over $1.1 billion since mid-June
The Federal Reserve has dialed back expectations of interest rate cuts this year in recent months, with the market now expecting just one or two cuts in 2024, down from around seven at the beginning of the year. This has led BlackRock analysts to warn that the Fed and other central banks around the world may be forced to hold interest rates higher than previously thought.
The Federal Reserve has dialed back expectations of interest rate cuts this year
The news has also been affected by Mt. Gox’s plan to distribute roughly $9 billion worth of digital assets, which has led to a correction in Bitcoin and crypto markets. According to crypto data aggregator Coinglass, over $313 million in positions have been liquidated in the last 24 hours, mostly traders long BTC and Ethereum.
Mt. Gox’s plan to distribute digital assets has led to a correction in Bitcoin and crypto markets
In conclusion, the crypto market has seen a sharp decline in recent days, with Bitcoin’s price dropping to around $60,000 per bitcoin. While some analysts are warning of a “true correction,” others believe that the market will bounce back. One thing is certain, however: the crypto market is always full of surprises.
