He bitcoin-price-live/”>bitcoin Price fell below $50,000 on Monday, hitting lows not seen in more than six months amid a broader global market sell-off.
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RIP: twitter.com/hashtag/bitcoin?src=hash&ref_src=twsrc%5Etfw”>#bitcoin falls below $50,000 image.twitter.com/11og9GoSyi
— bitcoin Magazine (@BitcoinMagazine) twitter.com/BitcoinMagazine/status/1820345902059430204?ref_src=twsrc%5Etfw”>August 5, 2024
bitcoin fell as much as 20% to around $49,000 before recovering slightly and trading back above $50,000. The sharp drop coincided with a plunge in stock markets around the world, fueled by fears of a recession.
Japan's Nikkei index plunged more than 8%, posting its worst two-day drop since 1987. Asian and European markets are experiencing some of their worst losses ever. In the U.S., the tech-heavy Nasdaq has entered correction territory after falling more than 20% from its peak. The S&P 500 has dropped nearly 4% over the past week.
Rising interest rates, disappointing tech earnings and signs of economic weakness such as Friday’s US jobs report have shaken investor confidence. The bitcoin market followed stocks lower, with bitcoin falling below $50,000 for the first time since February. bitcoin’s overall market cap fell by nearly $200 billion over the weekend.
He bitcoin-fear-and-greed-index/”>bitcoin Fear and Greed Index bitcoin fell into “fear” territory as prices approached six-month lows. But bitcoin has recovered from similar drops many times before, including a 20% drop in a single day last November.
Still, some analysts warn that continued declines could signal the end of the bull market and lead to a prolonged bearish phase. Others argue that this is simply a mild correction before a new all-time high, as the global market injects more liquidity.
The $50,000 level is considered an important support zone for bitcoin. bitcoin’s latest drop exemplifies the asset’s volatility and its correlation with speculative stocks. But bitcoin has recovered from previous sell-offs before resuming its long-term uptrend.
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