Bitcoin Retreats after Nearing $70K
Bitcoin almost hit $70K before its most recent decline, and we examine what happened and if it might recover.
Bitcoin (BTC) hit a high of $69,932 (BTC/USD) on Monday, its highest price in weeks. But then the token quickly retreated down to $66,268, where it currently resides.
This leading crypto coin has had a tough time for the second quarter of 2024, retreating from a near record high to hang between $65K and $55K for weeks at a time. After climbing very close to $70,000, Bitcoin has retreated again, now back to where it was on Thursday of last week.
Bitcoin had been riding high after the failed assassination attempt on Donald Trump, bolstered by his climbing presidential prospects and his strong pro-crypto stance. Other politicians rallied around cryptocurrency in the days following the attack, bolstering Bitcoin and the rest of the market until the industry started to talk once more about Bitcoin hitting a new high very soon.
Then, just before the token could hit that $70K milestone, it fell back, dropping by 5% in a matter of hours. This is one of the sharpest drops we have seen from Bitcoin in a while.
What Caused Bitcoin to Decline?
There are two factors to point at when it comes to Bitcoin’s sharp drop off. First of all, the Bitcoin conference, while helping the coin along momentarily, may have caused investors to second guess where the coin is headed. The market is still digesting news from the conference, which has called for some investors to reconsider their Bitcoin positions. We may continue to see selloffs stemming from that conference over the next few weeks.
The second factor to consider is the volatility of Bitcoin through much of this year. It failed to hit that record high when it passed the $70K mark earlier this year in June. That hurt the coin’s prospects with investors who had counted on it setting a record then. Many of them became less likely to stick it out the next time Bitcoin spiked. They waited for the opportunity to cash out when the coin surged.
We saw that take place on Monday, when Bitcoin soared to nearly $70K and investors sold off their tokens. Confidence has been eroded in Bitcoin through this second quarter of 2024 as many analysts predicted big gains around the Bitcoin halving that never materialized. Many investors are tired of waiting for Bitcoin to surge and are simply looking for their opportunity to get out of the game, which is what many of them did on Monday.
- Check out our free forex signals
- Follow the top economic events on FX Leaders economic calendar
- Trade better, discover more Forex Trading Strategies
- Open a FREE Trading Account
Related Articles
Comments
Sidebar rates
Related Posts
Save
Join 350 000+ traders receiving Free Trading Signals
Alerts
Rates
Calendar
Signals