Bitcoin dropped to its lowest point in over a month after showing signs of slowing down from its earlier record highs this year. After reaching nearly $74,000 in March due to hopes that US exchange-traded funds (ETFs) would start holding Bitcoin directly, its price has since fallen by about 14%. This drop matches the changing expectations for US interest rate cuts, which have reduced demand for riskier assets.
Bitcoin Keeps Dropping
“Cryptocurrencies have taken a hit from the sell-off in stock markets, reflecting a decrease in global financial risk appetite,” said Alex Kuptsikevich, a senior market analyst at FxPro, in a note on Friday.
Bitcoin fell by as much as 2.4% to $63,490, its lowest since May 15. It’s down about 3% since last Friday. Other major cryptocurrencies like Ether, XRP, Cardano, and Solana also saw small drops of around 1% or less.
“The strong rise in prices over the past few quarters has slowed down and might fail,” said Fiona Cincotta, a senior financial markets analyst at City Index. “Since Bitcoin has a limited supply, it’s seen as a hedge against inflation, but with global inflation cooling down, Bitcoin is under pressure.”
Bitcoin’s steady decline in recent weeks sped up on Friday, with the price falling more than 3% in the past 24 hours to around $63,700. This is a 9% drop over the past month. Despite this downturn, some optimists might find hope in indicators tracked by the analysis firm Santiment, which show that sentiment towards Bitcoin has been very negative for four weeks.
What Does Santiment Say?
“Most people are either scared or not interested in Bitcoin,” Santiment noted in a post on X. “This high level of fear, uncertainty, and doubt (FUD) is rare, as traders keep giving up,” they added. “When traders get tired, combined with big investors buying, it usually leads to price increases that benefit those who wait.”
Sentiment’s Weighted Sentiment Index, which measures Bitcoin mentions on X and compares positive to negative comments and trading volumes, showed a -0.73 reading as of Friday. The index has been negative since May 23.
Not a financial advice.