Bitcoin Plummets Toward $60K Mark in Major One-Day Slide Since FTX Collapse
Bitcoin has experienced a significant downturn, plunging to around $63,000 during early afternoon U.S. hours. This decline reflects a drastic drop of over 10% within 24 hours, marking the lowest value since October 2024. The cryptocurrency has fallen 50% from its all-time high of approximately $126,000, reached in early October.
Major One-Day Decline
February 5, 2024, is shaping up to be one of the most difficult days in Bitcoin’s history. The cryptocurrency is on track to experience its steepest one-day drawdown since November 8, 2022. During that prior incident, the collapse of FTX drove Bitcoin prices down below $16,000.
Impact on Other Assets
Bitcoin’s selloff is not an isolated event. Other asset classes are similarly affected. Silver dropped 14% within the same day and is now nearly 40% below its recent record high. Gold also fell over 2%, trading about 15% lower than its peak last week.
- Bitcoin current price: $63,000
- Drop from record high: 50%
- Silver decline: 14%
- Gold decline: >2%
- Tech stocks: iShares Expanded Tech-Software ETF down over 3%
Market Conditions and Predictions
The crypto market remains fragile, heavily influenced by thin liquidity. Adrian Fritz, chief investment strategist at 21shares, stated that modest sell-offs often trigger substantial liquidations. This creates a vicious cycle where each small drop leads to larger declines.
Despite ongoing speculation about a market bottom, Fritz urges caution. He emphasizes that there are no confirmed signs of a turnaround. The 200-day moving average, currently between $58,000 and $60,000, is a crucial support level to monitor. This aligns with Bitcoin’s “realized price,” which is the average cost basis for all Bitcoin holders.
Altcoins Suffer Heavily
The decline in Bitcoin has overshadowed the severe losses in altcoins. Most cryptocurrencies tracked by CoinDesk have seen declines of over 10% in the last 24 hours. Notably, XRP fell by 19%, managing to underperform even amid this broader selloff.
Fritz noted the lack of support levels for XRP, highlighting the technical vulnerability of this and similar tokens.
For more insights into the crypto market and to follow developments, stay tuned to Filmogaz.com.
