Bitcoin ready to cross 60,000 mark after nosedive

Bitcoin is on the verge of crossing the $60,000 mark after experiencing a sharp decline, which saw its value drop below $50,000 following a bearish reversal. This downturn occurred amid a broader market crash triggered by the Bank of Japan’s decision to raise interest rates to a 16-year high. The daily chart reflected a loss of bullish momentum, signalling the possibility of further decline. However, Bitcoin has begun to rebound.

As August began on a bearish note, Bitcoin’s performance in the third quarter may be slower than initially expected. Additionally, the slowdown among US tech giants could exert further downward pressure on Bitcoin prices.

Crypto selloff wipes out $270 billion in value as bitcoin, ether plunge

Over the past week, Bitcoin—along with major cryptocurrencies like Ethereum, Solana, and XRP—has experienced significant volatility as traders anticipate a potential impact from a BlackRock Bitcoin exchange-traded fund (ETF), according to a Forbes report.

This week, the broader crypto market was caught up in a major stock market sell-off as traders grew increasingly concerned about rising global interest rates. Coinbase has warned that further challenges may lie ahead.

Adding to the uncertainty, former US President Donald Trump recently suggested using Bitcoin to address the United States’ $35 trillion debt, and his sons, Eric and Donald Jr., have hinted at a significant crypto-related announcement.

Eric Trump expressed his enthusiasm for cryptocurrency and decentralised finance (DeFi) on social media, teasing a forthcoming announcement, while Donald Jr. echoed these sentiments, calling it “the future.” Although no specific details were provided, and Bitcoin was not directly mentioned, former President Trump’s recent statements have kept Bitcoin in the spotlight.

Bitcoin peaks at $70,000 before decline

At the Bitcoin 2024 conference in Nashville, Tennessee, Trump vowed to create a “strategic national Bitcoin reserve” and predicted that Bitcoin could surpass gold’s $16 trillion market capitalisation. He also stated that if re-elected, his administration would retain 100 per cent of all Bitcoin currently held or acquired by the US government, positioning it as the core of a national strategic stockpile.

Trump further sparked discussion by suggesting in a Fox Business interview that the US could use Bitcoin to pay off its $35 trillion debt, an idea he characterised as intriguing.