BTC/USD: Bitcoin crash triggers massive liquidations

• Bitcoin fell to a two-month low as $1billion of losses occurred over past 24 hours
• Elon Musk’s SpaceX reportedly sold all its Bitcoin, after writing down holdings in 2021 and 2022
• Bitcoin under pressure as global risk aversion leads to de-risking moment

Bitcoin’s plunge stemmed from nervousness about the looming US Bitcoin ETF decisions and on concerns that China’s property crisis could lead to further downward pressure for risky assets.  Now that Bitcoin fell below the key trading range of $28,500 to $30,500, all eyes will be on the $25,000 level.  

Bitcoin ETF rulings will start to happen and some traders are nervous that might not go so well.  Grayscale might get a ruling next week, but expectations are for more rulings to happen in September.  The bullish case for Bitcoin is that positive developments with an US Bitcoin ETF breakthrough could help prices make a run back towards the $30,000 region.  Bitcoin’s current downtrend however could get uglier if some of these rulings suggest a US ETF still remains distant or if the bond market selloff continues.  

Bitcoin is once again acting like a risky asset and next week should be critical for Bitcoin.  If monetary conditions continue to crush risky assets, Bitcoin selling could target the $21,500 region.

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.

• Bitcoin fell to a two-month low as $1billion of losses occurred over past 24 hours
• Elon Musk’s SpaceX reportedly sold all its Bitcoin, after writing down holdings in 2021 and 2022
• Bitcoin under pressure as global risk aversion leads to de-risking moment

Bitcoin’s plunge stemmed from nervousness about the looming US Bitcoin ETF decisions and on concerns that China’s property crisis could lead to further downward pressure for risky assets.  Now that Bitcoin fell below the key trading range of $28,500 to $30,500, all eyes will be on the $25,000 level.  

Bitcoin ETF rulings will start to happen and some traders are nervous that might not go so well.  Grayscale might get a ruling next week, but expectations are for more rulings to happen in September.  The bullish case for Bitcoin is that positive developments with an US Bitcoin ETF breakthrough could help prices make a run back towards the $30,000 region.  Bitcoin’s current downtrend however could get uglier if some of these rulings suggest a US ETF still remains distant or if the bond market selloff continues.  

Bitcoin is once again acting like a risky asset and next week should be critical for Bitcoin.  If monetary conditions continue to crush risky assets, Bitcoin selling could target the $21,500 region.

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.