Bitcoin’s Latest Price Movement
Bitcoin’s attempt to post modest gains during Friday’s U.S. trading session quickly fizzled, with the largest cryptocurrency plummeting from $65,000 to below $62,000. The sharp decline triggered a wave of liquidations, wiping off $290 million from long and short positions in the past 24 hours.
Bitcoin falls below $61,000
The recovery rebound ahead of the Federal Open Market Committee (FOMC) meeting and positive July Consumer Price Index (CPI) data set a bullish tone. However, the long-awaited rate cut was postponed, leading to a bearish turn in the cryptocurrency market as enthusiasm faded. Bond yields and the dollar fell sharply on Friday after weak U.S. jobs data for July, but Bitcoin failed to benefit, falling below $62,000 despite an initial rise past $65,000.
Market Turmoil and Liquidations
In addition to bearish momentum, Genesis Trading saw significant trades with Bitcoin and Ethereum, exceeding $1.5 billion. This move resulted in a 2.2% drop in Bitcoin and a 2.5% drop in Ethereum within an hour. The cryptocurrency market as a whole suffered, with Bitcoin, Ethereum, and Solana experiencing significant liquidations. Bitcoin, in particular, saw liquidations totaling $87.27 million.
Supply Shocks and ETF Outflows
Several supply shocks in the cryptocurrency market, including the German government’s sale of 50,000 Bitcoins and the distribution of Mt. Gox’s assets, have added downward pressure. Additionally, outflows from Bitcoin exchange-traded funds (ETFs) further complicated the market situation, with net outflows totaling $237 million on August 2. Grayscale ETF GBTC, Fidelity ETF FBTC, and BlackRock ETF IBIT all saw significant daily flows.
