Bitcoin has entered bear market territory, extending its decline to 25% from its ATH as per X crypto news outlet The Kobeissi Letter. The crypto now trades at its lowest level since February 2024. This sharp dip has erased $500B in market cap from the crypto markets over the past month. The drop has had investors wondering if this is a routine pullback or the start of a major bear market.
BREAKING: #Bitcoin extends decline and enters bear market territory, now down 25% from recent all time high.Bitcoin is now trading at its lowest level since February 2024.$500 billion of market cap has been erased in crypto markets over the last month.Is the party over for… pic.twitter.com/BRR1Sq1FqA
— The Kobeissi Letter (@KobeissiLetter) July 5, 2024
Bitcoin Price Analysis
According to The Kobeissi Letter, Bitcoin is down $18K from its peak just a few months ago. Despite this sharp decline, Bitcoin remains up 25% year-to-date. This data presents contradicts: while the recent losses are substantial, the YTD gains suggest some resilience.
The Kobeissi Letter’s tweet emphasizes the gravity of the market cap loss and questions whether the crypto party is over. This sentiment echoes the concerns of many investors who are now re-evaluating their positions.
CryptoBusy raised alarms by tweeting about Bitcoin’s critical $56K support level being broken. They explained that if the crypto community cannot rally and buy back at this price, the next support levels would be at $53K, with a major demand zone between $50K and $53K.
This analysis emphasizes the importance of these price levels for Bitcoin’s short-term stability. The breach of the $56K support indicates increased selling pressure and market volatility, further complicating the outlook for Bitcoin investors.
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Read also: Why Is the Crypto Market Down Today?
Why Bitcoin Price is Declining
The bearish momentum in the crypto market stems from several key factors, as Captain Altcoin reported earlier. The German government has initiated a massive selling of seized Bitcoin, amounting to $3.5B. This liquidation has placed considerable downward pressure on the market, contributing to the overall bearish trend.
Moreover, Mt. Gox exchange begun repaying its creditors, with a total of $8.5B slated for distribution. This development has sparked concerns within the crypto community, as many fear these creditors will quickly sell their newly acquired Bitcoin holdings.
The sharp Bitcoin decline and breach of key support levels indicate bearish momentum. However, some analysts believe that Bitcoin could still rebound, given its YTD gains.
The $500B market cap erosion in the past month undoubtedly has had some impacts on BTC, such large-scale sell-offs drive panic into the market affecting the general sentiment.
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The post Bitcoin (BTC) Plunges 25% from ATH: $500B Wiped Out as Crypto Giant Hits 2024 Low – Is This the End of the Bull Run? appeared first on CaptainAltcoin.