Bitcoin (BTC) has once again found itself in turbulent waters, with the popular Fear & Greed Index plunging back into “extreme fear” territory. The leading cryptocurrency suffered a sharp decline on Monday, dropping to an intraday low of $58,134 on the Bitstamp exchange. This dramatic fall triggered a wave of liquidations, with over $123 million in long positions wiped out.
The cryptocurrency market has been on a rollercoaster ride in recent weeks. Bitcoin endured a catastrophic crash last Monday, plummeting to a low of $49,557 amid contagion fears from the global stock market. However, the digital asset staged a remarkable recovery, reclaiming the $60,000 level just days later. This rapid rebound was Bitcoin’s most significant rally since February 2022, showcasing the cryptocurrency’s resilience.
Institutional investors played a pivotal role in Bitcoin’s resurgence. Notably, BlackRock’s Bitcoin exchange-traded fund (ETF) remained steadfast, weathering the market storm without experiencing any outflows. This stability from large financial players provided crucial support for BTC. Despite this, the cryptocurrency has struggled to maintain momentum above the $60,000 mark, reigniting concerns among investors.
Adding to the uncertainty surrounding Bitcoin, banking giant JPMorgan has issued a cautious outlook. The financial institution believes that Bitcoin lacks any compelling bullish catalysts that haven’t already been priced in. Furthermore, JPMorgan highlighted the vulnerability of equities, a factor that could potentially drag down the broader cryptocurrency market. However, with the S&P 500 and Nasdaq futures remaining relatively flat, Bitcoin’s recent downturn appears to be decoupling from traditional financial markets.
Technical indicators also paint a mixed picture. Bitcoin recently formed its first death cross of 2024, a bearish signal that occurs when the 50-day moving average crosses below the 200-day moving average. While often interpreted as a bearish omen, the death cross is a lagging indicator and does not necessarily predict future price movements.
Also Read: Bitcoin On High Alert – Economic Data Storm To Shake Crypto Market
As Bitcoin navigates this period of heightened volatility, investors and traders are closely monitoring market developments. The question remains: Will institutional support and the cryptocurrency’s resilience be enough to propel Bitcoin out of the current slump, or will the bearish sentiment prevail?
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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