Bitcoin dipped to somewhere a little below $65,000 alongside other cryptocurrencies on Tuesday, pressured by global economic worries and a slowdown in summer trading
As reported by Coin Metrics, Bitcoin’s price has declined by 3% to $64,680.44. This marks the first time since May 16 that the price has fallen below $65,000. It plummeted to $64,347.91 earlier in the day. Ether was trading at $3,401.37, a 4% decrease.
Other cryptocurrencies experienced more substantial losses. Ripple’s XRP experienced a 6% decline, Solana’s SOL token experienced a 7% decline, and Dogecoin experienced an 11% decline.
Marko Jurina, CEO of Jumper Exchange, a decentralized exchange (DEX) that enables users to swap and bridge cryptocurrencies across blockchain networks states that traders frequently sell at a discount to mitigate their losses or exit riskier positions while they await the resolution of uncertainty.
Jurina stated, “We are likely to witness one or both of these scenarios unfold today.”
“During the summer months, markets are thinner, geopolitical issues are far from resolution, and economic conditions are weakening worldwide.”
As a result of this perfect storm, movements will probably be parabolic in one direction or another for the next few months, as numerous individuals will be away from their workstations during the holidays and as the U.S. presidential election unfolds.
The Nasdaq Composite, dominated by technology, experienced a 0.1% decline in equities.
At the same time, the S&P 500, a comprehensive market, remained relatively unchanged in response to the weak U.S. retail sales data for May. MicroStrategy experienced a 1% decline, while Coinbase’s shares declined by 3%.
Since surpassing its previous record of $73,797.68 on March 14, Bitcoin has been grappling with the $70,000 threshold.
It conducted its most recent assessment of that threshold at the commencement of June. It has declined by 4% for the month and 9% for the quarter.
CryptoQuant suggests that Bitcoin’s downside may be restricted; however, there is inadequate evidence of bullish momentum.
Its on-chain data indicates that speculators have decreased their holdings since Bitcoin reached the $70,000 level in late May and are still not purchasing.