Bitcoin Takes a Big Hit as Market Continues to Fall
The cryptocurrency market experienced a significant downturn on Friday, notably with Bitcoin (BTC) leading the downward trend. Over the past 24 hours, Bitcoin dropped by 1.9% to $58,000, while Ethereum (ETH) fell by 2.3% to $2,579. Other major cryptocurrencies, such as Polkadot (DOT) and Solana (SOL), also experienced declines of 4% and 3% respectively.
The overall market sentiment reflected a bearish trend, with most cryptocurrencies experiencing losses. Zcash (ZEC) was one of the few exceptions, with a modest gain of 1.5%. On the other hand, meme coins like Dogwifhat (WIF), Pepe (PEPE), and Bonk (BONK) suffered the steepest drops, with losses ranging from 11.4% to 13%.
According to recent analysis from Glassnode, the market is currently being driven by sellers, as evidenced by a negative adjusted Cumulative Volume Delta (adj-CVD). This indicates that selling pressure is dominating demand from buyers in the spot market. The shift in market control began at the end of July when Bitcoin failed to break above $70,000.
However, despite the current selling pressure, Glassnode also reported that long-term holders of Bitcoin (LTHs) continue to hold on to their assets, indicating a strong conviction in the currency’s long-term value.
In a surprising turn of events, BlackRock’s ETFs, which are exchange-traded funds, have surpassed Grayscale’s in terms of Bitcoin and Ethereum holdings. This development marks a significant shift in the market, with BlackRock’s iShares Bitcoin Trust ETF and iShares Ethereum Trust ETF now holding nearly $21.22 billion worth of assets combined, surpassing Grayscale’s holdings.
In the traditional markets, U.S. stock futures took a hit on Friday, with the Dow Jones Industrial Average, S&P 500, and Nasdaq 100 all experiencing declines. Despite this, the U.S. retail sales data released on Thursday exceeded expectations, with a 1% jump in July. Additionally, weekly jobless claims fell, indicating positive economic indicators despite the market downturn.
In contrast, Asian stock market indexes painted a different picture, with major indexes in Japan, Taiwan, South Korea, Hong Kong, and Australia all experiencing bullish trends.
Overall, the cryptocurrency and traditional markets continue to demonstrate volatility, with various factors influencing the price action of different assets. As investors navigate through these turbulent times, staying informed and making well-informed decisions is crucial in managing investments effectively.
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