As a seasoned researcher with over two decades of experience in financial markets, I have witnessed countless market cycles and have learned that every bull run is followed by a bear market. The recent selloff in Bitcoin and the broader crypto market has caught my attention due to its rapidity and extent.
On August 5, Monday, the price of Bitcoin plummeted by approximately 12% during the Asian market hours, reaching around $54,000. As fears about an economic recession in the U.S. resurface, traders are rapidly selling off their risky investments. Renowned economist Peter Schiff predicted that Bitcoin ETFs might struggle in Monday’s trading session.
Bitcoin ETFs Can See Major Gap Down
As a seasoned investor with over two decades of experience in the financial markets, I have witnessed numerous ups and downs in various asset classes. The recent dip in Bitcoin price to $54,000, diving below its July lows, is reminiscent of similar market corrections we’ve seen before. However, the prediction by economist Peter Schiff of a potential 15-20% drop for spot Bitcoin ETFs on Monday, if true, could have significant implications for the crypto market.
As a crypto investor, I’ve noticed that Bitcoin has dipped below $58K, and if it drops below its July low by tomorrow’s U.S. Stock Market open, the Bitcoin ETFs could experience a significant drop of more than 15%. This would mean a 30% fall from their January highs. Such a substantial loss might lead to widespread ETF liquidations. In such a scenario, be prepared for what could resemble a Crypto Black Monday.
— Peter Schiff (@PeterSchiff) August 4, 2024
As a seasoned cryptocurrency investor and trader, I have witnessed the rollercoaster ride that is the crypto market numerous times. Last Friday, August 2nd, was no exception as the outflows from spot Bitcoin ETFs skyrocketed significantly to over $230 million with a sharp sell-off in all three US indices. The crypto market liquidations reached an astonishing $800 million during Asian trading hours on Monday.
BTC Drop to $40,000 Coming?
As an analyst, I’ve observed that the recent drop in Bitcoin price has breached the critical 200-day moving average, signaling potential for a significant correction. Specifically, if Bitcoin fails to reclaim the $57,000 support level, there’s a possibility it might slide down towards the $40,000 mark, as suggested by CryptoQuant analyst Julio Moreno.
Bitcoin is again testing key support levels.
The cost has dropped approximately to $57,000, representing a 12% decrease from the price previously seen by on-chain traders. This specific price point has served as a strong support during the ongoing bull run, as indicated by the dotted light blue line.
But, If this support fails, the price can go as…
— Julio Moreno (@jjcmoreno) August 4, 2024
1. Japan’s Nikkei stock index has plummeted by over 20% since its peak in July, sparking a wave of selling across worldwide markets. The U.S. futures market is also experiencing significant losses on Sunday, suggesting more sell-offs may be coming. There’s been a substantial increase in the likelihood of a US recession and a hard economic landing.
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2024-08-05 08:24