Bitcoin experienced a drop below $60,000 on April 17th as US markets opened, signaling a return to prices not seen since early March before the digital currency surged to new highs.
The flagship cryptocurrency reached a low of $59,658 before slightly bouncing back to around $60,800 as of the latest data. Bitcoin was holding onto the $60,500 support level after a decrease in selling pressure, with bulls aiming for a potential rebound above $61,000.
This decline coincides with a period of overall market turbulence, with both Bitcoin and traditional stock markets showing signs of strain. Bitcoin last reached these levels on March 5th before skyrocketing to a record-breaking $73,780 on March 13th. Since hitting that peak, BTC has been trading in a wide range between $59,000 and $72,500 since the beginning of April.
Experts attribute the current market volatility to various macroeconomic factors, including ongoing inflation in the US. Major stock indices like the S&P 500, Dow Jones, and Nasdaq were all reported to be in the red, reflecting broader economic uncertainties.
Federal Reserve Chair Jerome Powell hinted in a recent press conference that the central bank may postpone expected rate cuts. Powell noted that recent data has not increased confidence in the economy, suggesting a slower recovery pace than anticipated.
Other cryptocurrencies mirrored Bitcoin’s decline, with Ethereum falling below $3,000 to a low of $2,914 before stabilizing around $2,970. BNB dropped to $512 for the day, while Solana hit $126.8 before both tokens recovered to approximately $525 and $130, respectively.
The timing is crucial as Bitcoin approaches its upcoming halving event this weekend, which will reduce the block reward from 6.25 BTC to 3.125 BTC, potentially impacting Bitcoin’s value in the short term due to decreased supply pressure.
Investors are closely monitoring the impending halving event set to occur between late Friday and early Saturday, as historical data shows significant price movements following these events. As the market prepares for this significant occasion, ongoing geopolitical and economic factors continue to create uncertainty, indicating that the crypto market’s volatility is far from over.
