the Bitcoin price Bitcoin prices fell below $50,000 on Monday, hitting their lowest levels in more than six months amid a broad sell-off in the global market.
broke down: #Bitcoin Drops below $50,000 pic.twitter.com/11og9GoSyi
— Bitcoin Magazine (@BitcoinMagazine) August 5, 2024
Bitcoin fell about 20% to around $49,000 before recovering slightly to trade above $50,000 again. The sharp drop coincided with a collapse in stock markets around the world, due to fears of a recession.
Japan’s Nikkei slumped more than 8%, its worst two-day drop since 1987. Asian and European markets are seeing some of the worst losses on record. In the US, the technology-heavy Nasdaq is in correction territory after falling more than 20% from its peak. The S&P 500 is down about 4% over the past week.
Rising interest rates, disappointing tech earnings and signs of economic weakness like Friday’s U.S. jobs report have shaken investor confidence. The bitcoin market has followed stocks lower, with the price of bitcoin falling below $50,000 for the first time since February. Bitcoin’s total market cap lost nearly $200 billion over the weekend.
the Bitcoin Fear and Greed Index Bitcoin has fallen into “fear” territory as prices near six-month lows. But bitcoin has recovered from similar crashes several times before, including a 20% single-day drop last November.
However, some analysts warn that continued declines could signal the end of the bull market and lead to an extended bear market. Others see it as just a minor correction before a new all-time high, as the global market pumps more liquidity.
The $50,000 level is seen as an important support area for Bitcoin. Bitcoin’s recent collapse illustrates how volatile the asset is and how it is linked to speculative stocks. But Bitcoin recovered from the previous sell-off before resuming its long-term uptrend.
Comments are closed, but trackbacks and pingbacks are open.