Bitcoin, the world's largest cryptocurrency, fell below the $65,000 level for the first time in over a month. This decline was part of a broader decline in the cryptocurrency market due to concerns about the global economy and reduced liquidity during the summer months.
On Tuesday, the price of Bitcoin fell by 3% to $64,680.44, according to Coin Metrics data. BTC price traded below $65,000 for the first time since May 16. At the time of this writing, the price has rebounded slightly to $65,117.
Marko Jurina, CEO of Jumper.Exchange, a decentralized exchange (DEX) that allows users to exchange and bridge cryptocurrencies between blockchain networks, commented on market conditions. “Oftentimes, when traders are unimpressed with the performance of the economy or markets, they either sell at a lower price to minimize their losses or exit riskier positions while waiting for the uncertainty to disappear,” Jurina said.
Jurina continued his words as follows:
“Today we're likely seeing one or both of these scenarios play out. Economic conditions are weakening around the world, geopolitical issues are far from resolved, and markets are weaker in the summer months. Given this perfect storm, at least for the next few months, many people are away from their desks for the holidays and “As the US presidential election approaches, movements will likely be parabolic in one direction or another.”
Bitcoin's downside may be limited, but there is currently little evidence of bullish momentum, according to data from CryptoQuant. On-chain data shows that traders have reduced their holdings and are still not buying since Bitcoin reached the $70,000 level in late May. This lack of buying activity could keep the Bitcoin price under pressure in the near term.
*This is not investment advice.