Bitcoin plummets below $84,000 as massive sell-off erodes weekly gains in the crypto market.
The crypto market experienced a sudden downturn on Friday, wiping out gains from earlier in the week. Bitcoin fell to $83,800, while the CoinDesk 20 Index declined 5.7%. The sell-off in U.S. stocks due to poor economic data also affected crypto-focused stocks.
Macro-economic concerns added pressure to risk assets, leading to a decline in Ethereum’s ether (ETH) price against bitcoin. ETH fell over 6% to its weakest relative price since May 2020. The February PCE inflation report showed a 2.5% year-over-year increase in the price index, with core inflation at 2.8%, slightly above expectations.
The implementation of broad-scale U.S. tariffs next week has compounded investor concerns across markets. Bitcoin’s correlation with the Nasdaq has been close lately, so a U.S. equities roll-over could weigh on the broader crypto market. However, some analysts believe that today’s decline might be part of a larger price gap fill at around $84,000-$85,000 between Monday’s open and the previous week’s close.
Despite the ongoing correction, Joel Kruger, market strategist at LMAX Group, noted several positive trends such as crypto-friendly policies in the U.S. and more traditional financial firms entering the industry or expanding crypto offerings. These developments could bode well for digital assets later in the year.
Joel Kruger is a well-known American financial analyst and market strategist.
He serves as the chief economist at LMAX Group, a global digital exchange for institutional traders.
Kruger's expertise lies in analyzing economic trends and their impact on financial markets.
He regularly provides insights to media outlets such as Bloomberg, CNBC, and Reuters.
With over two decades of experience, Kruger has established himself as a respected voice in the field of economics and finance.
Bitcoin price: $83,800 (down 3.8% over the past 24 hours)
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The CoinDesk 20 Index decline: 5.7%
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Ethereum’s ether (ETH) price decline: over 6%
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U.S. stocks:
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The S&P 500: down 2%
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The Nasdaq index: down 2.8%
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The price of Bitcoin is determined by market supply and demand.
It can fluctuate rapidly due to various factors, including global economic trends, regulatory changes, and technological advancements.
“Market forces ultimately drive the price of Bitcoin.”
The total circulating supply of Bitcoin is capped at 21 million, which contributes to its scarcity and potential for increased value over time.
According to historical data, the price of Bitcoin has experienced significant volatility, with a peak of around $64,000 in April 2021 and a low of approximately $3,200 in December 2018.
The crypto market remains volatile, and investors should be cautious of potential setbacks. However, with positive trends emerging, it’s essential to keep a close eye on developments in the industry.
