"After surpassing $69,000 and approaching the psychological $70,000 barrier, the largest cryptocurrency by market capitalisation appeared to be on track to resume its upward trajectory. However, the swift pullback toward $67,000, including a volatile drop to $66,511, suggests in my view that the recent move was merely a technical bounce within a more complex macro environment, rather than the beginning of a sustainable bullish wave."
"The latest decline erased roughly $40 billion in market capitalisation, falling from $1.38 trillion to $1.34 trillion in a single day, while the total cryptocurrency market contracted by 2.4% to $2.38 trillion. In my opinion, the significance of these figures lies not only in their magnitude, but in their speed and their coincidence with the liquidation of leveraged positions exceeding $470 million within 24 hours."
"Bitcoin has not yet decoupled from high-risk asset dynamics, often moving as part of the broader 'growth trade' basket. Consequently, any repricing of risk in equity markets is quickly reflected in the cryptocurrency market."
Bitcoin declined sharply to $66,000 after failing to sustain momentum above $69,000, with the cryptocurrency market losing $40 billion in capitalization in a single day. The pullback appears to be a technical bounce rather than a sustainable rally within a complex macroeconomic environment. Over $470 million in leveraged positions were liquidated within 24 hours, indicating dangerous dependence on short-term funding and market fragility. Bitcoin's decline coincided with U.S. equity market losses, including a 300-point Nasdaq drop, demonstrating that cryptocurrency remains correlated with high-risk assets and the broader growth trade. Geopolitical factors added additional complexity to market dynamics.
#bitcoin-price-decline #market-leverage-and-liquidations #cryptocurrency-equity-correlation #market-volatility-and-risk-appetite
Read at London Business News | Londonlovesbusiness.com
Unable to calculate read time
Collection
[
|
...
]