Bitcoin drops to $64,000 amid global equity sell-off (2024)
Cryptocurrency markets were deeply in the red on Thursday as a slump in global tech stocks drove investors towards less risky assets.
The S&P 500 and Nasdaq ended at multi-week lows on Wednesday, with the S&P breaking one of its longest streaks with a daily decline of more than 2%. Increased market volatility triggered a sharp decline in the U.S. dollar, which fell another 0.7% to 152.78 yen on Thursday.
At 11:58 am IST, Bitcoin (BTC) was trading 2.7% lower at $64,114, while Ethereum fell 7.8% to $3,175. Meanwhile, the global cryptocurrency market cap declined by 3.55% to around $2.31 trillion in the last 24 hours.
"Bitcoin dropped to the $64,000 level following a sharp decline in US tech stocks, driven by disappointing earnings from major companies like Alphabet and Tesla. The ongoing selling pressure from Mt. Gox creditors also continue to weigh on the market. The next support levels are at $63,200 and $62,500, while resistance is at $65,500," said Edul, CEO Of Mudrex.
CoinSwitch Markets Desk commented, "The slump in BTC isn't an isolated event; US-based tech stocks also experienced significant drops yesterday. Another factor contributing to the crypto downturn is the recent launch of the Ethereum ETF."
"The outflows from Grayscale have intensified pressure on ETH, causing it to break below the crucial $3,300 support level. If the Ethereum ETF mirrors the trading patterns of Bitcoin ETFs, ETH could potentially dip below $3,000 before rebounding towards the $5,000 mark," CoinSwitch added.
Other popular altcoins, such as Solana (1.3%), Dogecoin (5.3%), Toncoin (4.3%), Cardano (3%), Avalanche (4.6%), Shiba Inu (4.5%), Polkadot (3.9%), and Chainlink (4.6%) also declined.
"If the bearish trend persists, altcoins are likely to underperform as compared to Bitcoin," said Vikram Subburaj, CEO of Giottus.
The volume of all stablecoins is now $75.32 billion, which is 91.82% of the total crypto market 24-hour volume, as per data available on CoinMarketCap.
Bitcoin's dominance is currently 54.84%. BTC volume in the last 24 hours rose 1% to $34 billion.
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An aggregate of $5.5 billion in Bitcoin options is set to expire in the early hours of July 26th. This month's expiry is crucial as Bitcoin's price faces significant downward pressure from multiple sources: the Mt. Gox bankruptcy proceedings distribution, the sale of 50,000 BTC by the German government, and the disposal of 14,000 BTC from the failed Genesis Trading firm.
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After correcting almost by 27% from the recent highs, Bitcoin made a low of $53,485. The asset didn't break the crucial support level of $52,000 and the lower longer shadow indicated buying at these levels. After this move, BTC started to consolidate between $56,500 to $59,700. It finally gave a breakout above the psychological resistance of $60,000 and rallied up to $68,474. The asset has strong resistance at $70,000 and $73,777. Once it breaks and sustains above these levels then we may expect the prices to further rally. $66,000 and $60,000 will act as a strong support for BTC. The asset is currently trading at $64,000 at the time of writing.
(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of the Economic Times)
"Bitcoin dropped to the $64,000 level following a sharp decline in US tech stocks, driven by disappointing earnings from major companies like Alphabet and Tesla. The ongoing selling pressure from Mt. Gox creditors also continue to weigh on the market.
In short, both macroeconomic factors and regulatory issues, combined with the fear of a miner sell-off, are contributing to the bearish sentiment surrounding Bitcoin.
"Bitcoin has plummeted to around $53,000, marking a significant decline, while Ether has also turned negative for 2024, reflecting broader concerns in the crypto sector. This downturn is driven by regulatory pressures, adverse macroeconomic factors like weak US job data, and the Japanese stock market crash.
So, who are the top holders of BTC? According to the Bitcoin research and analysis firm River Intelligence, Satoshi Nakamoto, the anonymous creator behind Bitcoin, is listed as the top BTC holder as of 2024. The company notes that Satoshi Nakamoto holds about 1.1m BTC tokens in about 22,000 different addresses.
Reporting cryptocurrency losses on your tax return is crucial as it can reduce your taxable income, leading to substantial savings on your tax bill. These losses can be used to offset taxes on capital gains from a variety of assets such as stocks, real estate, and profitable cryptocurrency transactions.
Major cryptocurrencies like Bitcoin and Ethereum have shown significant gains, reflecting broader market optimism. Experts predict a market rebound from August onward, driven by the cessation of liquidations and renewed inflows.
How is the Crypto Market Performing? The crypto market is in a significant surrendering phase, with Ethereum and Bitcoin experiencing sharp declines. The key market factors include political uncertainty, geopolitical tensions, economic data, and ETF performance.
From an investment perspective, Bitcoin toes the line between being a medium of exchange and a speculative digital asset. It also lacks any central governing body to regulate its distribution. As one might expect, these factors together make Bitcoin quite volatile, and therefore somewhat risky as an investment target.
Daily Bitcoin (BTC) Price Prediction For Today, Tomorrow, this Week, and Next 30 Days. Based on your price prediction input for Bitcoin, the value of BTC is projected to increase by 5%, potentially reaching $ 58,000.54 in the next 30 days.
While the trend in the first few months remained largely bullish, the bearish interference squashed the bullish possibility. Regardless of this, the Bitcoin price is believed to revamp a strong ascenidng trend in Q4 and rise again in 2024.
Bitcoin was created by an individual or group of individuals using the pseudonym 'Satoshi Nakamoto'. The true identity of Satoshi Nakamoto remains unknown to this day, and it is one of the most significant mysteries in the world of technology and finance.
There are now 28 people in the world who own over $1 billion in cryptocurrency. Total crypto includes Bitcoin and all other known cryptocurrencies. All statistics are as of 30 June 2024.
The federal government's relationship with bitcoin has generated numerous headlines over the years, which is surprising, considering that the U.S. government is one of the largest holders of bitcoins.
Despite the risks involved, shorting crypto has advantages, making it a high-risk, high-reward strategy. So, answering if a crypto goes negative, do you owe money? You may have to pay the buyer to sell if the crypto value goes negative when you sell off the bought cryptocurrency.
If you sell your crypto for a loss, the IRS allows you to offset losses against other income on your tax return. These so-called “realized losses” can be used to offset other taxable investment profits. When you hear the term “realized,” it usually means that an asset was sold.
For US cryptocurrency users, repurchasing crypto assets immediately after selling them triggers a crypto wash sale. This rule prevents investors from claiming tax losses on assets they still own. To comply with the wash sale rule, investors should wait at least 30 days before repurchasing an asset they've sold.
Prediction: The Bitcoin halving in April 2024 would proceed without major issues, and post-halving, bitcoin would rise above $48k. Review: The Bitcoin halving event in April 2024 occurred without any significant disruptions, demonstrating the network's stability and robustness.
When long positions are liquidated, traders who are betting on prices going up are forced to sell their positions, often at a loss. This increased selling pressure has driven the crypto market valuation lower today.
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