BTC dropped to $62,500 during late U.S. trading hours on Thursday but reversed losses to trade just under $64,000 at 6:30 UTC, near its 50-day moving average, a key support line for some traders.
“If the decline continues, the $63K and $61K levels, where the 50 and 200-day moving averages are, will be crucial,” noted Alex Kuptsikevich, a senior market analyst. “If this support fails, it could lead to a drop to $55K, which is concerning.”
“August is historically one of the two worst months for BTC. Over the past 13 years, bitcoin has ended August up five times and down eight times, with an average decline of 15.4% and an average rise of 26%,” he added.
Major cryptocurrencies fell in the past 24 hours amid weakness in global equities. Ether (ETH) lost 1.6%, while major tokens XRP and Solana (SOL) dropped as much as 8%. The broader cryptocurrency market, as reflected in a liquid index tracking the largest tokens by market capitalization (excluding stablecoins), was down 2.44%.
This broad sell-off in BTC affected bitcoin exchange-traded funds. While U.S.-listed BTC ETFs had a total daily net inflow of $50.6 million, several ETFs posted outflows. Meanwhile, Ether ETFs collectively posted a net inflow of $26.75 million.
The technology-heavy Nasdaq 100 ended Thursday with a 2.6% loss, and the S&P 500 Index dropped 1.4%, losing nearly all of Wednesday’s 1.6% gains due to concerns about the U.S. economy and future earnings of technology firms. Japan’s Topix index fell 6% on Friday, marking its biggest drop since 2016.
Presto Research highlighted standout performance in 2Q24 due to a 3.7% increase in BTC per share through “intelligent leverage,” a planned $2 billion equity offering for BTC purchases, and the adoption of fair-value accounting for BTC by 1Q25, which will benefit the broader BTC market. Year-to-date, BTC is up 45%.
