Bitcoin, the dominant cryptocurrency in the world, has dipped below the $65,000 mark for the first time in more than a month. This decrease is part of a wider decline in the cryptocurrency market, driven by concerns about the global economy and reduced liquidity during the summer season.
On a recent Tuesday, the price of Bitcoin dropped by 3% to $64,680.44, as per data from Coin Metrics. This marked the first time since May 16 that BTC traded below $65,000. As of now, the price has slightly bounced back to $65,117.
Marko Jurina, the CEO of Jumper.Exchange, a decentralized exchange enabling users to swap and connect cryptocurrencies across blockchain networks, shared his insights on the market conditions. He noted that in times when traders are not satisfied with the economic or market performance, they tend to sell at lower prices to minimize losses or exit riskier positions until uncertainties fade away.
Jurina further elaborated, stating that the ongoing economic weakening globally, unresolved geopolitical issues, and reduced market activity in the summer months have created a challenging environment. With many people on holiday breaks and the approaching US presidential election, market movements are expected to be volatile in the coming months.
Although the downside for Bitcoin may be limited, there is currently a lack of bullish momentum, according to data from CryptoQuant. On-chain data indicates that traders have decreased their holdings and are not actively buying since Bitcoin hit the $70,000 level in late May. This lack of buying pressure could continue to weigh on the Bitcoin price in the short term.
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