BREAKING: Bitcoin has fallen sharply, dropping below $73,000 today, reaching a low of $72,945, as fears of a stock market downturn grip investors. This significant price movement follows a surge in futures liquidations and escalating concerns over upcoming US corporate earnings, triggering a widespread sell-off.
The sell-off in US stocks, with major indices like the S&P 500, DOW, and NASDAQ declining between 0.70% and 1.77%, has spurred further selling pressure in the crypto market. NVIDIA and Microsoft suffered losses of 3.4% and 2.7% respectively, while Amazon experienced a 2.67% decline.
As of now, Bitcoin is down 15% year-to-date and almost 45% from its all-time high of $126,267. With more than 100 S&P 500 companies set to report their earnings this week, investor anxiety is palpable, and the current volatility may be a preview of the market’s reaction to the earnings data.
Liquidations are compounding the downward trend, with $127.25 million in Bitcoin long positions and $159.1 million in Ethereum liquidated. Despite some attempts by retail and institutional investors to buy at these lower prices, the pressure continues to mount.
Joe Burnett, Vice President of Bitcoin Strategy at Strategy, stated that the current price action of Bitcoin is still within historical norms at around $74,000. He noted that the 45% drawdown aligns closely with typical volatility patterns, suggesting that this fluctuation is not entirely unexpected.
Traders are now left wondering if they will step in to buy Bitcoin as it trades at what many perceive to be a discount. Bids are reportedly thickening in the range of $71,800 to $63,000, but whether this will stabilize the price remains uncertain.
As the situation develops, all eyes will be on the upcoming earnings reports and their potential impact on both the stock and cryptocurrency markets. The interconnectedness of these markets means that external factors are likely to continue influencing Bitcoin’s price action.
Stay tuned for updates as this story unfolds.
