Bitcoin
Bitcoin returns below US$65,000 for the first time in more than a month
The worsening macroeconomic climate and the collapse of industry giants like FTX and Terra have weighed on the price of bitcoin this year.
FOR | Nurphoto via Getty Images
Bitcoin fell with the broader cryptocurrency market on Tuesday amid concerns about the global economy and lower summer liquidity.
Bitcoin’s price last fell 3% to $64,680.44, according to Coin Metrics, dropping below $65,000 for the first time since May 16. Earlier in the day, it fell to $64,347.91. Ether it lost 4% and was trading at $3,401.37.
Other cryptocurrencies suffered bigger drops. Curling XRP fell 6%, while Solana’s SUN token fell 7% and dogecoin fell 11%.
See the graph…
Bitcoin 1 month
“Often, when traders are not impressed with the performance of the economy or markets, they sell at a discount to minimize their losses or exit riskier positions while waiting for the uncertainty to subside,” said Marko Jurina, CEO of Jumper.Exchange , a decentralized exchange (DEX) company that allows users to exchange and connect cryptocurrencies between blockchain networks.
“Today, we are probably seeing one or both of these scenarios play out,” Jurina added. “Economic conditions around the world are weakening, geopolitical issues are far from resolved, and markets are weaker during the summer months. Given this perfect storm, moves will likely be parabolic in one direction or the other, at least during the coming months, while many people stay away from their desks for the holidays and during the US presidential election.
In actionsthe tech-heavy Nasdaq Composite fell 0.1%, while the broad-market S&P 500 was little changed after weak US retail sales data for May. Coin base shares fell 3%, while Microstrategy fell 1%.
Bitcoin has been struggling with the $70,000 cap since hitting its all-time high of $73,797.68 on March 14. The last time it tested this level was in early June. It fell 4% in the month and 9% in the quarter.
According to CryptoQuant, bitcoin’s downside may be limited, but there is little evidence of bullish momentum at the moment. Its on-chain data suggests that traders have been reducing their holdings since bitcoin hit the $70,000 level in late May and are still not buying.