The digital assets market is witnessing a streak of losses as Bitcoin (BTC) dipped to the $62K price level. This marked the second worst weekly drop in 2024 reflecting a decline in demand for BTC exchange-traded funds (ETFs) and increased uncertainty around monetary policy.
Bitcoin extends losses
As per the data, the cumulative digital assets market cap dropped by more than 3% in the last 24 hours to stand at $2.27 trillion. Its 24 hour trading volume is up by 66% to stand at $52.8 billion. The biggest crypto dropped by around 10% in the last 30 days.
Bitcoin price dropped by over 2% in the last 24 hours. BTC is trading at an average price of $62,703, at the press time. Its 24 hour trading volume jumped by 129% to stand at $18.7 billion. This suggests that investors are moving their funds rapidly in order to ditch the losses.
BTC hit its lowest level in over a month. This decrease follows a six-day streak of outflows from US Bitcoin ETFs.
Concerns about the Federal Reserve’s ability to reduce interest rates quickly have contributed to the downturn in digital assets. The interest rates are at a two decade high and some analysts suggest that this trend signals a warning for broader risk appetite.
Will this drop continue?
Experts described the current crypto market as “characterized by low volatility, soft volumes, and order books getting unbalanced when prices start to move to the edges of their range.”
The decline in Bitcoin is part of a broader downturn affecting other cryptos as well. Ether (ETH) and Solana (SOL) have recorded major dumps. Each recorded their longest streak of weekly declines since last year and 2022, respectively.
Bitcoin is now underperforming compared to traditional assets like stocks, bonds, and gold this quarter. However, analysts are now watching the 200 day moving average. It currently roams around $57,500, as a potential support level for Bitcoin’s price.
Technical analysis suggests that Bitcoin may be entering a bearish phase. The crypto has formed a double-top price pattern, a bearish indicator typically signaling a potential trend reversal. This pattern consists of two peaks with a valley in between, with the second peak representing uptrend exhaustion. A breach of the low point between these peaks would confirm a bearish trend.
