Bitcoin Tumbles as Crypto Market Sell-Off Mirrors Tech Stock Slide
The world’s biggest cryptocurrency, Bitcoin (BTC), experienced a significant price drop on Wednesday, falling below $65,000. This decline coincides with a broader market sell-off that hit tech stocks particularly hard.
Crypto Liquidations Hit Hard
Data from CoinGlass reveals a surge in long liquidations across the cryptocurrency market in the past 24 hours. These liquidations, totaling $220.7 million, represent forced selling of positions that had bet on rising prices. Bitcoin itself accounted for $14.8 million in long liquidations.
Ethereum Leads the Decline
Ethereum (ETH), the second-largest cryptocurrency, suffered a steeper drop than Bitcoin, falling nearly 8% to trade around $3,177. This decline mirrors Bitcoin’s price movement, suggesting a broader market correction.
Crypto Market Downturn Mirrors Tech Slump
The crypto market’s drop appears to be linked to the significant losses witnessed in the U.S. stock market on Wednesday. The Nasdaq 100 index, heavily weighted towards tech stocks, saw its steepest decline since October 2022, dropping 3.65%.
Analysts Cite Multiple Factors
Several factors might be contributing to the crypto market’s slump:
- Tech Earnings Fall Short: Disappointing earnings reports from tech giants like Alphabet (Google’s parent company) on Tuesday, with higher-than-expected capital expenditures, triggered a tech stock selloff that may be impacting the crypto market.
- Shifting Political Landscape: The potential impact of the upcoming U.S. elections and changes in Washington’s policy stance towards cryptocurrencies could be playing a role in investor sentiment.
- Ethereum ETF Hopes on Hold: While bullish sentiment around a potential U.S. Ethereum ETF initially boosted the market, delays or rejections could be dampening enthusiasm.
Analyst Opinions Diverge
Despite the short-term losses, some analysts remain optimistic about Bitcoin’s long-term prospects. Singapore-based crypto trading firm QCP Capital believes Bitcoin could follow a similar trajectory to its post-ETF launch all-time high, with Ethereum potentially converging with its previous highs due to sustained institutional interest.
Rich Dad Poor Dad Author’s Prediction
Robert Kiyosaki, author of the best-selling book Rich Dad Poor Dad, predicts a potential surge in Bitcoin’s price if Donald Trump is re-elected as U.S. president. He forecasts a rise to $105,000 per coin by August 2025, fueled by a weaker dollar intended to boost American exports.
BTC/USD Technical Outlook
Bitcoin’s price is currently trading below key support levels, including the $65,500 and the 100-hourly moving average. A break below $64,000 could lead to further declines towards the $63,200 support zone. However, a recovery above $65,500 could spark another increase in the coming sessions.
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