- Bitcoin fell below $65,000 for the first time in more than a month amid concerns about the global economy and lower summer liquidity.
- Other cryptocurrencies like Ether, Ripple’s XRP, Solana’s SOL, and Dogecoin also suffered declines.
- Economic conditions around the globe are weakening, geopolitical issues are unresolved, and markets are thinner during the summer months, contributing to the crypto sell-off.
Bitcoin experienced a decline on Tuesday along with the broader cryptocurrency market. Concerns about the global economy and lower summer trading volume contributed to bitcoin’s fall below the $65,000 level for the first time since mid-May.
Bitcoin Price Action
The price of bitcoin dropped around 3% to $64,680, according to Coin Metrics data. Earlier in the day, it fell as low as $64,347. Ether also declined by about 4% to $3,401.
Other major cryptocurrencies saw steeper losses. XRP was down 6%, Solana’s SOL token slid 7%, and Dogecoin tumbled 11%.
Explanations For The Decline
According to crypto experts, uncertain economic conditions and geopolitical tensions have led traders to exit riskier crypto positions or sell at lower prices to minimize losses. Lower summer liquidity in the crypto market is also amplifying price swings.
Marko Jurina, CEO of decentralized exchange JumperExchange, said “Given this perfect storm, moves will likely be parabolic in one direction or another at least for the next few months.”
Impact On Crypto Companies
In equity markets, Coinbase shares fell 3% and MicroStrategy dipped 1%. Broader tech stocks also declined, with the Nasdaq Composite down 0.1%.
Bitcoin has struggled to break above $70,000 since hitting its all-time high of $73,797 in March. It remains down 4% in June and 9% for the second quarter.
On-chain data from CryptoQuant suggests bitcoin’s downside may be limited, but there are few signs of renewed bullish momentum for now.
Conclusion
Bitcoin fell below the key $65,000 level amid broader risk-off moves in global markets. Concerns about global growth, geopolitics, and thin summer liquidity have weighed on bitcoin’s price. Upside appears limited for now barring a shift in market sentiment.
