The price of the asset hit its lowest level since April 30.
BTC market cap fell to $1.54 trillion.
The price of bitcoin (BTC) recorded a strong correction that dragged the cryptocurrency below $76,000, marking its lowest level in several weeks. The bearish movement accelerated a few hours after Kevin Warsh officially took office as the new president of the United States Federal Reserve, in an event held at the White House and publicly supported by Donald Trump, who assured that he hopes Warsh will become one of the best leaders in the history of the US central bank.
After the FED ceremony, bitcoin quickly went from trading near $78,000 to hitting lows around $75,500, a level not seen since late April. The fall generated a strong impact on the entire cryptocurrency market: Ether retreated to the $2,050 area, XRP lost support at $1.35, and solana fell below $85.
On the other hand, according to data from CoinGlass, liquidations exceeded 485 million dollars, of which more than 430 million corresponded to long positions, as the following graph shows.
With this setback, bitcoin accumulates weekly losses close to 3%while its market capitalization fell to approximately $1.54 trillion. The weakness of the asset also dragged down the global cryptocurrency market, whose total valuation fell to about 2.65 billion dollars. With just a few days left to close the month, the bearish behavior increases the chances that bitcoin will register a negative monthly close and expand the losses accumulated so far this year.
For much of the previous day, bitcoin had remained in a relatively stable range between $77,200 and $78,000. However, selling pressure began to intensify after 9:00 am, causing a massive sell-off that eliminated nearly $1,000 from its price in just a couple of hours. Subsequently, The asset achieved a slight recovery to the area of $76,800, although without managing to consolidate again above $77,000.
The fall of Bitcoin also attracted attention because it occurred in a context in which traditional stock markets showed signs of recovery thanks to the optimism generated by diplomatic advances between the United States and Iran. The decrease in geopolitical tensions helped reduce the oil prices and moderated the rise in US Treasury yields, factors that gave some relief to stock markets, especially the technology sector.
With this market movement It appears that bitcoin is increasingly reacting to global liquidity conditions and risk appetite of investors. Under this scenario, they warn that if expectations of high interest rates in the United States continue, Bitcoin volatility could intensify even further in the coming weeks.