Bitcoin price
Bitcoin Dips Below $50K as Global Market Crashes
Published
2 months agoon
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adminThe price of Bitcoin plunged below $50,000 on Monday, reaching lows not seen in over six months amid a widespread global market sell-off.
BREAKING: #Bitcoin falls below $50,000 pic.twitter.com/11og9GoSyi
— Bitcoin Magazine (@BitcoinMagazine) August 5, 2024
Bitcoin dropped as much as 20% to around $49,000 before rebounding slightly to trade above $50,000 again. The steep decline coincided with crashing stock markets worldwide, fueled by recession fears.
Japan’s Nikkei index plunged over 8%, posting its worst two-day rout since 1987. Asian and European markets are experiencing some of the worst losses ever. In the U.S., the tech-heavy Nasdaq entered correction territory after sliding over 20% from its peak. The S&P 500 fell nearly 4% over the past week.
Rising interest rates, disappointing tech earnings, and signs of economic weakness like Friday’s U.S. jobs report have rattled investor confidence. The Bitcoin market followed stocks lower, with Bitcoin falling below $50,000 for the first time since February. The overall Bitcoin market cap shed nearly $200 billion over the weekend.
The Bitcoin fear and greed index dropped into “fear” territory as prices approached six-month lows. But Bitcoin has recovered from similar crashes many times before, including a 20% single-day plunge last November.
Still, some analysts warn that continued declines could signal the bull market’s end and lead to an extended bear phase. Others argue that it is just a slight correction before a new all-time high, as the global market injects more liquidity.
The $50,000 level is seen as an important support area for Bitcoin. The latest Bitcoin crash exemplifies the asset’s volatility and correlation with speculative equities. But Bitcoin has rebounded from previous sell-offs before resuming its long-term uptrend.
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Bitcoin Close Above This Will Trigger Rally to $70K, Will Fed Rate Cut Help?
Published
2 days agoon
September 18, 2024By
adminThe Bitcoin price has staged a strong recovery gaining 4.5% in the last 24 hours surging past $60,500 a day before the FOMC meeting on Wednesday. As per the technical chart, BTC has been trading range-bound in a down-trending channel. Thus, to set the bull run ahead, it would need to break past the top of the channel on a weekly chart. All eyes will be on the Fed rate cut with the market still uncertain whether Powell would opt for a 25 bps rate cut or a 50 bps rate cut. Banking giants JPMorgan and Goldman Sachs are expecting a modest beginning with a 25 bps interest rate cut.
Bitcoin Price Needs Firm Closure above $61,900
Popular crypto strategist Rekt Capital stated that the BTC price has been forming a series of lower highs since late July. Thus, the key level to watch this week would be $61,900, breaking above which could push Bitcoin into an upward trajectory.
Historically, BTC has always given a breakout nearly 150-160 days following the Bitcoin halving event. Thus, going with this historical calendar, the Bitcoin price will breakout from its reaccumulation range by late September 2024.
Furthermore, September has historically been the month of giving poor returns with an average decline of 4.48%. In contrast, October has shown average monthly gains of 22.9%. Thus, this could be the final phase of the long-term consolidation for BTC.
Will Fed Rate Cut Fuel BTC Rally?
At the FOMC meeting on September 18, the US Federal Reserve is planning for a major pivot in its monetary policy and opting for monetary easing through interest rate cuts. However, the Street remains divided on whether this would be a 25 bps rate cut or a 50 bps rate cut.
🚨Here are the Fed rate cut odds heading into the big meeting.
50bps cut = 64%
25bps cut = 36%I believe that Powell will cut by 25bps. pic.twitter.com/Zlpj9qy6vG
— Jesse Cohen (@JesseCohenInv) September 17, 2024
The common consensus in the market has been that the Fed rate cut would flood more liquidity thereby being a catalyst to the Bitcoin price rally. However, renowned economist Peter Schiff stated that the rate cuts won’t actually benefit BTC. He said that this would eventually crush the dollar and reignite inflation.
On the other hand, Massachusetts Senator Elizabeth Warren has demanded a 75 bps rate cut from the Fed. Custodia Bank founder Caitlin Long said that this would be interesting to watch whether Senator Warren has any weight of word in DC. In the past, she called Powell “a dangerous man” and it’s unlikely that the central bank governor would give any thought to her demands.
GRAB THE POPCORN🍿–we’re all about to see whether @SenWarren still has political juice in DC. Remember, she once called Powell “a dangerous man;” & her minions control federal financial regulatory agencies right now. Will she get 75, or will she be revealed as swimming naked??? https://t.co/rVBoU9WFfw
— Caitlin Long 🔑⚡️🟠 (@CaitlinLong_) September 18, 2024
Bhushan Akolkar
Bhushan is a FinTech enthusiast with a keen understanding of financial markets. His interest in economics and finance has led him to focus on emerging Blockchain technology and cryptocurrency markets. He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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Bitcoin
Analyst Predicts New ‘Blood Monday’ With 0.50% Fed Rate Cut Looming
Published
3 days agoon
September 17, 2024By
adminAs Bitcoin (BTC) grapples with a challenging market environment, it has struggled to regain momentum, hovering around the $53,000 and $60,000 levels for six consecutive weeks.
After losing the crucial $70,000 threshold on August 1, the largest cryptocurrency remains at risk of further declines, particularly with the upcoming Federal Reserve (Fed) meeting on September 18, where a 0.50% rate cut could significantly impact its price.
BTC’s Future Hangs In Balance
Recent insights from crypto analyst Doctor Profit suggest that the market is closely divided, with equal chances—50%—of a 0.25% or 0.50% rate cut. However, Doctor Profit is confident that the Fed will opt for the larger cut, citing a need for decisive action in the current economic climate. He notes, “A 0.25% cut is simply too little for where we are now.”
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The analyst argues that failing to implement a 0.50% cut could lead to market turmoil reminiscent of the “Blood Monday” experienced on August 5, which saw Bitcoin plummet to lows of $48,900, resulting in a nearly 25% price drop.
According to Doctor Profit, this could include acknowledging the Fed’s past strategies and an optimistic outlook for the economy, potentially paving the way for future rate cuts.
Given these potential scenarios, the analyst warns of the potential for market manipulation and “scam wicks” that could mislead investors on both sides of the trade. In addition, geopolitical tensions, particularly regarding the Israel-Lebanon situation, add another layer of complexity and may exacerbate market fears and volatility.
Despite the short-term risks, Doctor Profit remains bullish on Bitcoin’s long-term prospects, particularly through the end of Q3 2025.
The analyst believes that any short-term panic will ultimately be countered by a return to expansive monetary policy, as seen in the recent influx of USDT and other cash injections into the market. He highlights that once the rate cuts are implemented, the Fed’s money printing will likely resume, providing a foundation for recovery.
Bitcoin Price Analysis
Looking deeper into the current price action, analyst Ali Martinez recently noted that Bitcoin trades within a parallel channel on the hourly chart.
Martinez contends that Bitcoin could bounce back to the middle or upper levels if the lower border holds, targeting $60,200 or $62,000. However, Martinez warns that a break below the support level of $58,100 could lead to a drop towards $55,000.
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Zooming out to a broader perspective, Martinez also highlights concerning trends in Bitcoin’s Market Value to Realized Value (MVRV) Momentum. Since breaking below the $66,750 mark in June, Bitcoin has been in a downtrend, and this negative trend has yet to show signs of reversal.
To invalidate this indicator, BTC needs to break above this level and reclaim it as support, which could signal the continuation of an expected rally towards the all-time high of $73,700 reached in March this year.
When writing, the largest cryptocurrency on the market is trading at $58,440, recording losses of over 3% in the 24-hour.
Featured image from DALL-E, chart from TradingView.com
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BlackRock And Bitcoin ETFs Saved BTC Price: Bloomberg Analyst
Published
5 days agoon
September 15, 2024By
adminBloomberg analyst Eric Balchunas has asserted that BlackRock and the Bitcoin ETFs saved the BTC from massive decline. The analyst’s statement related to rumors that the world’s largest asset manager receives Bitcoin IOUs from the Coinbase crypto exchange. A popular crypto analyst has outlined a theory suggesting that the asset manager may be shorting BTC with these IOUs, leading to the coin’s decline at different times.
BlackRock And Bitcoin ETFs Saved Bitcoin Price
Balchunas stated in an X post that BlackRock and the Bitcoin ETFs repeatedly saved the BTC price “from the abyss.” The analyst made this statement to rebut arguments that traditional investors were to blame every time the coin declined. He added that he understands why these exist, as people want to “scapegoat the ETFs” because they find it hard to believe that the native HODLers could be the sellers.
However, Eric Balchunas claimed that these Bitcoin natives are indeed the sellers. He remarked that they are sabotaging the Bitcoin price, not traditional investors. Popular Bitcoin analyst Ali Martinez recently revealed how BTC miners had sold over 30,000 $BTC in three days, proving Balchunas’s point that the “call is coming from inside the house.”
#Bitcoin miners have sold over 30,000 $BTC in the last 72 hours, worth around $1.71 billion! pic.twitter.com/OuaiIo7QZ9
— Ali (@ali_charts) September 11, 2024
It is also worth mentioning that these Bitcoin ETFs contributed significantly to the BTC price reaching a new all-time high (ATH) of $73,000 in March earlier this year. These funds witnessed impressive net inflows upon launch, causing new money to flow into the BTC ecosystem and spark a rise in its price. BlackRock, in particular, has continued to hold on to its coins, recording only three daily net outflows since its January launch.
Coinbase Helping TradFi To Supress Bitcoin
There have been rumors that Coinbase is writing Bitcoin IOUs for BlackRock, leading to price suppression. Crypto analyst Tyler Durden is one of those who have continued to make such allegations. Earlier this year, the analyst explained that the crypto exchange’s IOUs to the asset manager means they can borrow as much Bitcoin to short and not show proof that they hold the coin 1:1.
I told everyone I went through the chain – I mean it’s a public ledger literally anyone can do it – Coinbase are writing IOUs for Blackrock.
Now everyone is waking up and hopefully Coinbase has a bank run.
Baldilocks is anti bitcoin. pic.twitter.com/GsnTSg0y6Q
— Tyler (@TylerDurden) September 14, 2024
To further prove his point that the world’s largest asset manager was suppressing BTC price with Coinbase’s help, Durden alluded to data from Cryptoquant. He claimed the US crypto exchange was the biggest buyer and seller on every bottom and top in this range. The analyst also opined that the asset manager will put a top on the market at some point and crash it or create a major pullback.
Meanwhile, Coinbase CEO Brian Armstrong responded to Durden’s allegations, clarified how ETF mints and burns are processed, and ultimately settled on-chain. He indicated there was no foul play, noting that they are audited and these reports are available to everyone. Armstrong added that they had no right to share the addresses of their institutional clients, including BlackRock.
At the time of writing, Bitcoin is trading at around $60,000. As Coingape reported, the projected rate cuts next week could benefit the BTC price. Historically, this macro event is bullish for the coin.
Boluwatife Adeyemi
Boluwatife Adeyemi is a well-experienced crypto news writer and editor who has covered topics that cut across DeFi, NFTs, smart contracts, and blockchain interoperability, among others. Boluwatife has a knack for simplifying the most technical concepts and making it easy for crypto newbies to understand. Away from writing, Boluwatife is an avid basketball lover and a part-time degen.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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