Bitcoin (BTC) Price Joins Major Global Stock Indexes in Sudden Nosedive, Is Crypto Bull Cycle Over?

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As a seasoned crypto investor with a decade-long journey in this rollercoaster market, I must say that today’s Bitcoin plunge feels like a deja vu of the crypto winter of 2018. The red candles on my screen are all too familiar, but the lessons learned from those dark days have made me more resilient and patient.

In the last 24 hours, Bitcoin (BTC) price spearheaded significant declines across the crypto market. This leading digital currency dipped by more than 12% during the early Asian trading hours, falling to approximately $52,961 as I write this.

On Monday during the mid-European session, the overall value of the cryptocurrency market dropped by over 16% within the last 24 hours to approximately $1.87 trillion. As per the most recent crypto market statistics, Ethereum‘s price saw a significant drop of more than 21% in the past day, setting the pace for altcoins.

Consequently, over $1 billion was withdrawn from the highly-leveraged cryptocurrency market, primarily impacting long position holders. On the other hand, Bitcoin traders experienced losses totaling approximately $363 million within the last 24 hours.

Top Reasons Why Bitcoin Price Dropped Today

The current trends in Bitcoin’s price and the broader cryptocurrency market have been aligning with typical monthly patterns, with August and September generally showing a downturn. However, today’s significant drop in Bitcoin’s value, reminiscent of the aftermath of the FTX crypto crash, can be attributed to the underperformance of the Japanese stock market.

On Monday, Japan’s NIKKEI 225 Index experienced a significant decrease of approximately 12.4%, closing around 31,458. Meanwhile, the Asia Dow Index USD also saw a notable drop of close to 7% and was hovering at about 3,693 as of this writing.

Nearly every European stock market index has plummeted by over 2% during the recent hours. It’s anticipated that U.S. stock markets will experience a decline once they open for trading later on today.

Significantly, Robinhood Markets Inc (NASDAQ: HOOD) temporarily stopped trading for a full day due to concerns about potential liquidity issues, with its stock price dropping more than 20% since Friday.

Currently, Warren Buffett, a renowned billionaire, has sold a substantial amount of his stock holdings, leaving him with more cash than the total value of all Ethereum in circulation.

🚨 BLACK MONDAY MELTDOWN

The Situation:

World financial systems are experiencing significant instability, primarily due to the Japanese carry trade, causing a remarkable wave of selling activities.

Key Points:

– Japan’s Nikkei 225: A staggering 18.2% drop in two days, including a 12.4% plunge today.

– US Markets: $7…

— Mario Nawfal (@MarioNawfal) August 5, 2024

Over the past week, U.S. Bitcoin ETFs experienced a net withdrawal of approximately $80 billion, breaking a four-week streak of gains.

Is the Crypto Bull Cycle Over?

With Bitcoin’s price dipping beneath $50,000 for the first time since February, its Fear & Greed Index sank below 26, indicating intense fear amongst investors. This has sparked debate among traders whether the cryptocurrency market’s bullish trend has come to an end.

In other words, historical records indicate that Bitcoin’s price has undergone significant drops prior to its explosive growth during a bull market.

If Bitcoin price follows historical trends, a V-shaped rebound could happen in the fourth quarter.

Additionally, the price of Bitcoin appears to have a strong floor around $47,000 – $50,000, providing potential reinforcement for optimistic market expectations.

Significantly, it’s predicted that the Federal Reserve in the United States could start highly awaited reductions in interest rates as soon as the next month, prior to the scheduled general elections.

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2024-08-05 13:46