Bitcoin Loses Steam, Dips Below $65,000 Amid Broader Market Concerns

Bitcoin, the world’s leading cryptocurrency, experienced a price drop on Tuesday, falling below $65,000 for the first time in over a month. This decline reflects broader anxieties within the cryptocurrency market and coincides with concerns about the global economy and lower summer liquidity.

According to Coin Metrics, Bitcoin’s price reached a low of $64,347.91 earlier in the day, settling at $64,680.44 by late Tuesday, representing a 3% decrease. The decline extended to other major cryptocurrencies, with Ether falling 4% and other altcoins like XRP, SOL, and Dogecoin experiencing even steeper drops.

Why did BTC price fall?

Analysts attribute the downturn to a combination of factors. Marko Jurina, CEO of Jumper.Exchange, a decentralized cryptocurrency exchange, suggests that investor risk aversion plays a role. When economic or market outlooks appear uncertain, traders may choose to sell their holdings at a discount or exit riskier positions altogether until the situation clarifies.

This cautious sentiment aligns with recent performance in the traditional stock market. The tech-heavy Nasdaq Composite dipped slightly on Tuesday, mirroring weak U.S. retail sales data for May. The broader S&P 500 index also remained relatively flat. Shares of major cryptocurrency-linked companies like Coinbase and MicroStrategy also reflected the bearish trend.

Bitcoin’s Next Move?

Bitcoin’s struggle to break above the $70,000 resistance level is another contributing factor. Since reaching its all-time high of $73,797.68 in March, Bitcoin has repeatedly tested but failed to surpass this threshold. As of June, the cryptocurrency is down 4% for the month and 9% for the quarter.

While on-chain data from CryptoQuant suggests limited downside risk for Bitcoin in the immediate future, there’s also a lack of strong bullish momentum. The data indicates a trend of traders reducing their holdings since Bitcoin’s late-May brush with $70,000, with buying activity remaining subdued.

The coming weeks will be crucial in determining Bitcoin’s next move. Whether investor confidence returns or the current cautious sentiment persists will significantly impact the cryptocurrency’s price trajectory.

(Disclaimer: This story is purely for informational purposes and not to be considered an investment advice).