Bitcoin Nosedive Jolts Crypto Market Out of Its Summer Stupor

economictimes.indiatimes.com:

lowest point since 2016. That lull snapped Thursday, when Bitcoin plunged more than 8% in the space of a few hours to a two-month low of $25,314 late in the New York day. The slump sparked a broad decline across all of crypto, leading to more than $1 billion in liquidations and putting Bitcoin on pace for its worst week since November and crypto exchange FTX’s collapse.

The carnage — fueled by the prospect of prolonged high interest rates and exacerbated by thin crypto trading — was a reminder of the various threats that continue to stalk digital assets, from hostile regulators to a broader rout in risk assets. And even as Bitcoin has recovered smartly from last year’s lows, many investors are still sitting out, depriving the market of the breadth and depth that are key ingredients for a sustained bull run. “There are still significant amounts of macro uncertainty keeping investors away, and liquidity is still thin,” said Noelle Acheson, author of the “Crypto Is Macro Now” newsletter and former head of market insights at Genesis Trading.

“Bottom line, there’s not yet enough conviction.” Thursday’s activity marked another entry in an emerging trendline for Bitcoin in 2023, with the token having already crashed to two similar low points in January and March. But every sharp decline this year has been followed by recovery, said FRNT Financial’s Stephane Oullette. “The next few days should give more clues to whether the selloff will continue and we’ll see a reversal of this year’s trend,” Oullette said in an email on Friday.