Bitcoin plunged to a new low for the past two months amidst a global market downturn

Bitcoin plunged to a new low for the past two months amidst a global market downturn. The leading cryptocurrency experienced a significant drop on Friday, breaking out of its recent trading range as a wave of risk aversion swept through global markets.

On the previous Thursday, Bitcoin saw a steep decline of 7.2%, marking its largest single-day drop since November 2022, coinciding with the collapse of major exchange FTX. It continued its downward trajectory, hitting a two-month low of $26,172 during Asian trading hours on Friday, a level not seen since June 16. By 0835 GMT, there was a slight recovery, with the price rising to $26,441, representing a marginal 0.8% decline for the day.

Global markets faced significant pressure, with Wall Street indices declining on Thursday and Asian shares seeing their third consecutive week of losses. Concerns about China’s economy and expectations of sustained high US interest rates contributed to the negative sentiment.

Ether, the second-largest cryptocurrency, remained relatively stable at $1,685.20 following the previous day’s drop.

Bitcoin plunged to a new low for the past two months amidst a global market downturn

Elon Musk, a prominent figure in the cryptocurrency community, has historically influenced Bitcoin’s valuation through his public statements. The recent SpaceX news was cited as a catalyst for Bitcoin’s decline, according to Ben Laidler, a strategist at eToro.

Laidler noted that cryptocurrencies are not immune to broader market trends and are facing selling pressure across various asset classes.

Joseph Edwards, head of research at Enigma Securities, attributed Bitcoin’s price fluctuations to low volatility and a lack of retail investor interest.

Bitcoin had been hovering around the $30,000 mark in recent months, showing a gradual recovery from the significant drop in 2022, which led to financial losses for investors.

In June, the crypto market received a boost from news of BlackRock’s plans to launch a Bitcoin exchange-traded fund (ETF) in the US. This development brought optimism to the market, signaling potential growth opportunities.

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