Ethereum
Bitcoin Price Falls Below $56,000; Ether, Solana, Other Cryptocurrencies Drop Up to 15%
Bitcoin’s price fell on Friday, dropping for the fourth consecutive trading session, led by a massive selloff in cryptocurrencies.
Bitcoin price was $55,510, down 5.82% in the last 24 hours, with a market cap of $1.11 trillion. Since the beginning of the year, Bitcoin price has increased by 35.39%.
Among other digital assets, prices of smaller coins like Ethereum fell 8.4% to $2,954.16, Solana fell 9.55% to $123.08 and XRP fell 12.48% to $0.400.
Bitcoin price hit an all-time high of $73,798 in March, driven by strong demand for the first U.S. Bitcoin exchange-traded funds. However, inflows into the token’s ETF have since declined, weighing on Bitcoin prices. Additionally, approvals for the first U.S. ETF for the second-largest token Ether are pending.
Cryptocurrency prices have been pressured by declining demand for Bitcoin exchange-traded funds (ETFs) in the United States. Political developments in the United States and signs that governments are getting rid of seized tokens have also weighed on Bitcoin prices.
“Bitcoin (BTC) has seen a wave of liquidations totaling $121.29 million as long positions were forced to close due to mounting losses. Over the past month, Bitcoin has fallen by 15%, reflecting increased market volatility and bearish sentiment. There may be additional resistance to reach the $60,000 levels as bears are dominating the market due to liquidations, whale movements, miner selling, etc. The asset sale by the German government is adding to the volatility of BTC,” said Rajagopal Menon, Vice President, WazirX.
According to a Bloomberg report, administrators of the bankrupt Mt. Gox exchange are gradually returning a stockpile of bitcoin to their creditors. Speculators are unsure how much of the $8 billion will ultimately be sold. A wallet linked to Mt. Gox transferred $2.7 billion worth of bitcoin on Friday, according to Arkham Intelligence.
On the other hand, global stock markets have rebounded, with the MSCI Inc. global equity index near a record high. The short-term (30-day) correlation between Bitcoin and the index is plummeting.
Investors are eagerly awaiting the release of U.S. nonfarm payrolls data later in the day to gauge the prospects for a potential interest rate cut by the U.S. Federal Reserve. Weak U.S. economic data has strengthened the case for a Fed rate cut in the coming months.
“The US Federal Reserve chairman has hinted at deeper-than-expected rate cuts, but there is no timeline for when this will happen. This scenario is considered bullish for Bitcoin and major altcoins. Additionally, easing miner sales could ease pressure on the market in the coming weeks,” Menon said.
(With contributions from Bloomberg)
Disclaimer: The opinions and recommendations expressed above are those of individual analysts or brokerage firms, and not those of Mint. We advise investors to consult certified experts before making any investment decisions.
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