Bitcoin, the prominent cryptocurrency, witnessed a fresh two-month low on Friday, breaking free from its recent tightly bound range, as global markets grapple with a prevailing risk-averse sentiment.
In a notable decline, Bitcoin dropped by 7.2% on Thursday, marking its most significant single-day dip since November 2022, coinciding with the collapse of the leading FTX exchange.
During Asian trading hours on Friday, it further slipped to a two-month nadir of $26,172, its lowest point since June 16. However, a partial recovery took place by 0713 GMT, edging up to $26,478, indicating a 0.6% decline for the day.
The worldwide markets have been engulfed by a wave of selling, exemplified by Wall Street’s primary indices concluding on a downward note on Thursday. Meanwhile, Asian shares are on track for a third consecutive week of losses, driven by apprehensions surrounding China’s economic outlook and concerns over the potential prolonged elevation of U.S. interest rates due to the robust economy.
The second-largest cryptocurrency, Ether, stood firm at $1,690.20, after also enduring a substantial drop on the preceding day.
Joseph Edwards, Enigma Securities’ Head of Research, attributed the fluctuations in Bitcoin’s value to reduced volatility and a lack of fervor among retail investors.
Bitcoin had been consistently hovering around the $30,000 mark in recent months. Its value received a boost in June when BlackRock expressed intentions to establish a spot bitcoin exchange-traded fund (ETF) in the United States.
This move was interpreted by certain investors as a signal that the U.S. Securities and Exchange Commission might be inclined to approve spot bitcoin ETF applications from various asset managers, including Grayscale.
Edwards underscored, “The current substantial concern revolves around the potential anticipation of Grayscale’s lawsuit outcome against the SEC. Optimism in this regard has sustained market levels higher than they might otherwise have been throughout much of the summer.
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