- Bitcoin is down to $52,000
Bitcoin continues to shed value amid a generally bearish sentiment on financial markets. The price of the oldest and most well-known cryptocurrency dropped to $51,600 on the Bitstamp exchange on Monday morning, reaching its lowest level since February. Since Friday evening, Bitcoin has lost approximately $10,000 in value, marking a decline similar to that seen in June 2022. The second-largest cryptocurrency, Ether, also took a significant hit.
Last week, Bitcoin experienced a notable sell-off. Timo Emden, an analyst at Emden-Research, attributed this to a "cocktail of uncertainty" currently affecting the cryptocurrency. "In particular, renewed recession fears in the US are catching investors off guard," said Emden. Recent disappointing economic data from the US, including an unexpected weak jobs report, has fueled these concerns. In July, the unemployment rate in the world's largest economy reached its highest level in nearly three years.
Cryptocurrencies face further turmoil
At the start of the week, other cryptocurrencies also faced strong selling pressure. The price of Ether plummeted by around 15% to $2,340, also dealing a blow to newly launched Ethereum ETFs aimed at attracting new investors in the US. The total market capitalization of all cryptocurrencies has decreased significantly, falling by about 14% to $1.85 trillion. The Bitcoin dominance rate was last reported at approximately 56%.
Just a week ago, Bitcoin had risen to just below $70,000. Statements from Republican presidential candidate Donald Trump had driven the cryptocurrency towards its record high, which was last reached in March at just over $74,000. Trump had pledged to make the US the "crypto capital of the planet and the Bitcoin superpower" if he were to return to the White House after the November election.
The price movements seen over the past week once again demonstrate the volatility of trading in cryptocurrencies. As such, investors are repeatedly warned about the potential for significant price declines in Bitcoin and other cryptocurrencies.
Despite the recent price increase, Bitcoin once again experienced a significant decline, dropping to its lowest level since February, with a loss of approximately $10,000 in value. This low point has raised concerns among investors, especially given the renewed recession fears in the US.
