Bitcoin falls below $50,000 for first time since February amid global market selloff | Wilnesh News

Cryptocurrencies plunged as recession fears triggered a sell-off in global markets.

The price is Bitcoin It fell more than 13% to $50,963.57 on Monday, according to Coin Metrics. It fell to $49,111.10, its lowest level since February and below $50,000 for the first time.

Bitcoin has fallen nearly 18% since Saturday. A week ago, on July 20, it climbed to a high of $69,982.

Nexo co-founder Antoni Trenchev said: “A 30% plunge, while scary, is normal during a bull market, which is encouraging, and Bitcoin has rebounded to over $50,000.” “But there is no doubt that we are in a In a volatile market environment… Bitcoin turns bullish when it moves back towards the 200-day moving average, which usually tells us whether we are in a bull or bear market at $61,500.

ether The losses were even more severe. The crypto asset fell 17% to $2,271.21, bringing its three-day loss to 24% and erasing its 2024 gains.

Cryptocurrency stocks were among the hardest hit in pre-market trading. Coin library fell 13%, while micro strategy down nearly 17%. Mining stocks also suffered double-digit losses.

The moves follow a broader market selloff that began last week, when a weaker-than-expected July jobs report reignited investor fears of a recession. The Nasdaq index, which is dominated by technology stocks, entered a correction. Japanese stocks plunged more than 12% overnight, entering a bear market on Monday, their worst one-day drop since 1987.

Yuya Hasekawa, a cryptocurrency market analyst at Japanese Bitcoin exchange Bitbank, said: “Until last Wednesday, everyone believed that inflation was gradually declining and the economy was relatively strong, so the Fed would start cutting interest rates if the economy successfully soft-landed. “However, the July U.S. manufacturing PMI and employment reports were much weaker than market expectations – now (investors) are worried about the possibility of a recession and a sell-off in risk assets.”

“Having said that … given that there is no absolute evidence that the economy is in recession, the market’s reaction is a bit overreacted,” he continued. “We may see some kickback this week.”

In addition to economic and geopolitical concerns, cryptocurrency investors have been dealing with selling pressure from the Mt. Polymarket polls show the gap between Trump and Kamala Harris has narrowed significantly since President Joe Biden dropped out of the race on July 21.

In August, a period when risk assets typically perform poorly, Bitcoin prices have fallen about 21% and are below the $55,000 floor that has supported it for much of the year. If it fails to recover, this could be its worst month since June 2022, when shares fell about 37%.

Bitcoin is still up 20% so far this year.