Bitcoin Plummets to Five-Month Low Amid Economic Slowdown Fears

2024-08-07 08:00:59

(MENAFN- Matrix PR) Bitcoin plummeted to a five-month low on Monday amid broader financial market declines driven by fears of a U.S. economic slowdown. The cryptocurrency dropped 12% in 24 hours, hitting $51,995 by 02:13 ET, erasing gains from the March launch of spot Bitcoin exchange-traded funds.

The fall in Bitcoin's value mirrored steep equity market losses since Friday, spurred by weak U.S. economic data raising recession concerns. Wall Street indexes tumbled, and Asian markets saw significant declines, with Japanese stocks entering a bear market. Bitcoin, known for its speculative nature, was particularly hard hit.

Despite heightened expectations of Federal Reserve interest rate cuts, Bitcoin continued to decline, with traders preferring safe havens like the Japanese yen and gold. Additionally, U.S. government mobilization of $2 billion in tokens and reduced trading volumes in crypto derivatives further pressured Bitcoin. Uncertainty over U.S. regulation also weighed heavily on crypto markets.

Ether, the second-largest cryptocurrency, fell 21.5% to December lows, while XRP, SOL, ADA, DOGE, and SHIB each saw substantial losses.

- Mohamed Hashad, Chief Market Strategist, Noor Capital

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