Bitcoin Price Falls Below $60,000 as Pre-Halving Weakness Continues
The cryptocurrency market faced continued weakness on Wednesday as Bitcoin briefly dipped below $60,000, causing uncertainty among investors. The pre-halving volatility in the market led to a decline in prices for gold, stocks, the DXY, the U.S. 10-yr Treasury note, and other cryptocurrencies.
Stocks also recorded losses as traders assessed the risks posed by conflict in the Middle East and uncertainty surrounding interest rate cuts. The S&P, Dow, and Nasdaq all finished in the red, down 0.58%, 0.12%, and 1.15%, respectively.
Bitcoin’s price fluctuated throughout the day, hitting a high near $65,540 before dropping to $59,640 and then recovering to $61,150. Analysts at Bitfinex noted that as the Bitcoin halving approaches, the amount of BTC leaving exchanges has increased, indicating a potential market inflection point.
Despite the current volatility, macro analyst Lyn Alden remains optimistic about Bitcoin’s long-term outlook, predicting that it could surpass $100,000 in the next year and a half. She highlighted the dwindling supply of Bitcoin on exchanges and rising global liquidity as factors that could support Bitcoin’s price growth.
In the altcoin market, there was a mixed performance with some tokens recording gains while others saw losses. Injective (INJ) led the gainers with a 14.8% increase, while Mantra (OM) was the biggest loser, declining by 11.4%.
Overall, the cryptocurrency market cap now stands at $2.24 trillion, with Bitcoin’s dominance rate at 53.6%. Despite the current challenges, analysts remain optimistic about the long-term potential of Bitcoin and the broader cryptocurrency market.
