The price of Bitcoin (BTC) has recorded a significant correction, with the cryptocurrency falling below $76,000, its lowest level in several weeks. The bearish momentum accelerated hours after Kevin Warsh was officially sworn in as the new head of the US Federal Reserve at a White House event, with Donald Trump publicly endorsing the move and making it clear that he expects Warsh to become one of the best leaders in the history of the US central bank.
After the FED ceremony, Bitcoin quickly fell from trading around $78,000 to a low of around $75,500, the lowest level since late April. This decline had a strong impact on the entire cryptocurrency market. Ether retreated to the $2,050 area, XRP lost support at $1.35, and Solana fell below $85.
Meanwhile, according to CoinGlass data, liquidations amounted to over $485 million, of which over $430 million represented long positions, as shown in the chart below.
With this setback, Bitcoin accumulates a weekly loss of nearly 3%while its market capitalization decreased to approximately $1.54 trillion. The asset’s weakness also weighed on the global cryptocurrency market, causing its total valuation to drop to around $2.65 trillion. With only a few days left until the end of the month, the bearish move raises the possibility that Bitcoin will end the month at a negative price, widening the losses accumulated so far this year.
For most of the previous day, Bitcoin remained in a relatively stable range between $77,200 and $78,000. However, selling pressure started to increase after 9am, causing a massive drop that wiped nearly $1,000 from the price in just a few hours. Next, Although assets achieved a slight recovery to around $76,800, However, it failed to consolidate again above $77,000.
Bitcoin’s decline was also notable for coming at a time when traditional stock markets are showing signs of recovery thanks to optimism generated by diplomatic developments between the United States and Iran. The easing of geopolitical tensions has led to a decline in oil prices and a reduction in the rise in US Treasury yields, providing some relief to stock markets, particularly the technology sector.
In line with this market movement Bitcoin seems increasingly responsive to global liquidity conditions and risk appetite of investors. They warn that under this scenario, Bitcoin volatility could further intensify in the coming weeks if high interest rate expectations in the US continue.
(Tag translation) Bitcoin (BTC)
