- Bitcoin dropped below $61,000, causing over $260 million in long liquidations.
- Rising US unemployment rate (4.3%) spooked investors, leading to market downturns.
- Geopolitical tensions and Mt. Gox/Genesis Bitcoin distributions added pressure on Bitcoin prices
Bitcoin experienced a significant drop below $61,000, resulting in over $260 million in long liquidations. According to the post by a renowned crypto analyst, Ash Crypto, several factors have contributed to this sharp decline. Each of these factors plays a crucial role in the broader financial landscape.
Rising Unemployment Rate in the US, Strengthening Japanese Yen, and Interest Rate Hike
The recent rise in the US unemployment rate to 4.3% has spooked investors. Higher unemployment can signal a weakening economy, potentially leading to a recession.
As a result, both the stock market and the cryptocurrency market have seen a downturn. Investors are wary of holding riskier assets, contributing to Bitcoin’s decline.
The Bank of Japan’s decision to raise interest rates for the first time in 17 years has had a ripple effect across global markets. Previously, borrowing yen was essentially free, but the new interest rates have changed that dynamic.
Investors are now pulling money out of US equities and other risk-on assets to take advantage of the stronger Japanese Yen. This shift in investment strategies has added pressure on Bitcoin, leading to further sell-offs.
Fear of Global Conflict, and Impact of Mt. Gox and Genesis Distributions
Geopolitical tensions have also played a part in Bitcoin’s recent struggles. For the fifth time this year, fears of World War III have surfaced.
Read CRYPTONEWSLAND on
google news
During times of uncertainty, investors typically move away from riskier investments like cryptocurrencies. This fear-driven behavior has contributed to Bitcoin’s decline as people seek safer assets.
The ongoing distribution of Bitcoin from the Mt. Gox settlement and the recent start of the Genesis distribution have also influenced the market. Yesterday, Genesis sent over $1 billion worth of Bitcoin, which the market interpreted as a sign of an impending dump.
As the market digests these events, some analysts believe that the Federal Reserve might react with rate cuts. Meanwhile, market data signal BTC’s potential rally to the upside as whales accumulate more coins daily.
Read Also
disclaimer read moreCrypto News Land, also abbreviated as "CNL", is an independent media entity - we are not affiliated with any company in the blockchain and cryptocurrency industry. We aim to provide fresh and relevant content that will help build up the crypto space since we believe in its potential to impact the world for the better. All of our news sources are credible and accurate as we know it, although we do not make any warranty as to the validity of their statements as well as their motive behind it. While we make sure to double-check the veracity of information from our sources, we do not make any assurances as to the timeliness and completeness of any information in our website as provided by our sources. Moreover, we disclaim any information on our website as investment or financial advice. We encourage all visitors to do your own research and consult with an expert in the relevant subject before making any investment or trading decision.
