Bitcoin
Bitcoin Price Faces Double Trouble Amid SpaceX’s Write-Down and Fed Rate Concerns
Bitcoin price has been in a steep freefall over the last few days on the back of a wave of risk aversion throughout world markets and concerns about the Fed’s interest rate path. Bitcoin, the largest cryptocurrency by market capitalization, has crashed by more than 10% over the past week to its lowest level since June 2023. The asset’s total market capitalization has slumped by 7.27% to $514 billion over the last day, while the total volume of BTC traded over the same period jumped by more than 107%.
Fundamentals
Bitcoin price has been in the red for the past few days amid economic uncertainty and a decline in the crypto market sentiment. The global cryptocurrency market cap has decreased by 6.12% over the past 24 hours to $1.06 trillion, while the total crypto market volume increased by more than 97%. Bitcoin’s dominance has also slipped over the same period to 48.46%.
Most altcoins, including Ethereum, the largest altcoin by market cap, have been in a steep downward trajectory for the past few days. Among the worst performers in the crypto market are XRP, Cardano, Solana, Polygon, Litecoin, Shiba Inu, Avalanche, and Bitcoin Cash, which have all dropped by more than 10% each.
The Crypto Fear and Greed Index, which measures the sentiment of the cryptocurrency market participants on a scale from 0 to 100, shows that the market is in extreme fear. At press time, the index reading was at a Fear level of 37, down from a neutral level of 50 two days ago. A Fear level usually shows that investors have started selling irrationally.
The dollar is headed for a fifth winning streak against its major peers, the longest streak seen in 15 months. The US dollar index, which measures the performance of the greenback against six developed market rivals, including the Euro and Yen, has climbed to 103.52. A stronger dollar is usually bearish for assets such as stocks and cryptocurrencies.
Catalysts Behind BTC’s Decline
The Bitcoin price selloff came several hours after the Wall Street Journal reported that SpaceX, owned by Elon Musk, wrote down the value of Bitcoin it owns by a total of $373 million in 2022 and 2021, and sold its holdings of the virtual currency. According to researchers and analysts, the company’s move is the most brutal minute-by-minute selloff ever seen in the history of Bitcoin.
In 2022, Tesla Inc, which is also owned by Elon Musk, announced that it had sold 75% of the Bitcoin it had purchased, a little more than a year after investing $1.5 billion in the digital currency. Tesla also recorded about $101 million of Bitcoin charges in 2021, when it sold some of its holdings. Elon Musk has historically been a vocal supporter of the crypto industry.
Bitcoin price has also been under intense pressure due to the uncertainty around the Fed’s monetary policy path. FOMC meeting minutes released earlier this Wednesday pointed to the possibility of further interest rate hikes. During the two-day policy meeting in July, policymakers noted that inflation remains too high and further monetary policy tightening might be needed to ease pressures from higher prices.
Bitcoin Price Technical Analysis
The daily chart shows that the Bitcoin price has been on a bearish trajectory for the past few days, crashing to its lowest level in two months. At the time of writing, Bitcoin was trading lower at $26,500. The digital asset has dropped below the 50-day and 200-day exponential moving averages, as well as the 50-day and 100-day simple moving averages. Its Relative Strength Index (RSI) dropped to the oversold region at 20.
Therefore, the Bitcoin price is likely to continue falling in the ensuing sessions amid economic uncertainty and a decline in market sentiment. As such, the BTC price is likely to drop further to the immediate support level of $25,800. However, a flip above the 200-day EMA at $27,265.50 might pave the way for more upside.
BTC Price Chart
Bitcoin price dumped hard on Monday, briefly slipping below $41,000, erasing gains recorded in the previous week. The premier cryptocurrency seems to have exhausted its recent rally propelled by industry vulnerabilities. At the time of writing, the world’s largest cryptocurrency was trading slightly lower at $41,385. Bitcoin’s total market cap has dipped by 2% over the past day, while the total volume of BTC tokens traded over the same period climbed by 58%.
Fundamentals
Bitcoin price has been facing retracements and a rollercoaster over the past few days after recently rocketing to a 20-month peak. On-chain data has suggested that many investors used the opportunity to take some profits, leading to a decline in the asset’s price.
Bitcoin’s price slump is mirrored in the wider crypto market, with the global crypto market cap decreasing by 1.85% over the past 24 hours to $1.55 trillion. The total crypto market volume has increased by 32% over the same period. The Crypto Fear and Greed Index has plunged from a level of extreme greed to a greed level of 70, suggesting a decline in risk appetite.
Ethereum, the largest altcoin by market capitalization, is currently trading at $2,167, down almost 3% for the day. Meme coins have been hit hard by the market slump, with Dogecoin and Shiba Inu down by more than 4% over the last day.
Last week on Thursday, cryptocurrency experts took notice of…
Bitcoin price edged lower on Thursday despite optimism in wider markets on the back of the Fed’s interest rate decision. The flagship cryptocurrency has been consolidating above the critical level of $42,000 after briefly topping $44,000, its highest level in 20 months. Bitcoin was trading 0.71% lower at $42,569 at press time. BTC’s total market cap has increased by more than 3% over the last day to $832 billion, while the total volume of the asset traded over the same period jumped by 22%.
Economic Outlook
Bitcoin price has been trading sideways over the past few days, suggesting a pause in its recent rally towards $45,000. The premier cryptocurrency has decreased by 4% in the past week but remains 15.22% higher in the month to date. The digital asset has staged a significant recovery this year after a torrid 2022 in which a string of scandals, including the collapse of FTX, led to a market meltdown, undermining the credibility of the sector.
The crypto market has been buoyed by the Fed’s latest interest rate decision. The US Federal Reserve on Wednesday held its key interest rate unchanged for the third consecutive time, in line with market expectations. With the easing of the inflation rate, members of the Federal Open Market Committee (FOMC) voted to keep the benchmark overnight borrowing rate in a targeted range between 5.25%-5.5%.
Additionally, the central bank indicated that three rate…
Bitcoin price has been hovering above the $43,000 psychological level over the past two days amid anticipation about the potential approval of a spot bitcoin ETF. The flagship cryptocurrency has climbed more than 16% in the past week and nearly 170% in the year to date. Bitcoin’s total market cap has increased by nearly 5% over the past 24 hours to $858.9 billion, while the total volume of the token traded rose by 43%. The Bitcoin price was trading at $43,914 at press time.
Fundamentals
Bitcoin price has posted significant gains over the past few days, climbing to its highest level since April 2022, before the crash of a stablecoin that started a litany of company failures, pummeling crypto prices. The world’s largest cryptocurrency briefly topped the crucial level of $44,000 on Wednesday amid rising momentum despite being massively overbought.
According to analysts, with no spot bitcoin ETF approvals yet and the halving event five to six months away, the market is riding on FOMO. Capital has been flowing in the Bitcoin market amid enthusiasm that the launches of spot ETF will bring in billions of dollars of new investment into the crypto sector.
Investors have already started providing capital as seed money for ETF products. Notably, a recent report by CoinDesk showed that the world’s largest fund manager, BlackRock, received $100,000 in capital from a seed investor for its spot bitcoin exchange-traded fund…
-
Blogs6 years agoBitcoin Cash (BCH) and Ripple (XRP) Headed to Expansion with Revolut
-
Blogs6 years agoAnother Bank Joins Ripple! The first ever bank in Oman to be a part of RippleNet
-
Blogs6 years agoStandard Chartered Plans on Extending the Use of Ripple (XRP) Network
-
Blogs6 years agoElectroneum (ETN) New Mining App Set For Mass Adoption
-
Don't Miss6 years agoRipple’s five new partnerships are mouthwatering
-
Blogs6 years agoCryptocurrency is paving new avenues for content creators to explore
-
Blogs6 years agoEthereum Classic (ETC) Is Aiming To Align With Ethereum (ETH)
-
Blogs6 years agoLitecoin (LTC) Becomes Compatible with Blocknet while Getting Listed on Gemini Exchange
