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The cryptocurrency market has plummeted relentlessly, with liquidations exceeding $1 billion. Such developments and a weak market structure could have welcomed the massive price plunges. Bitcoin flashed bearish signals after news of SpaceX selling its entire BTC stash.
Moreover, the fragile global economy, including China’s Evergrande bankruptcy updates and crashing treasury bonds, triggered the historic crypto liquidation in 2023.
Weakening China’s economy and banking worries saw the United States stock market plunge this week. For instance, invezz.com reported HSBC shares dipped amid crisis in China’s real estate industry. Meanwhile, the latest long liquidations and possibilities of more rate increases amidst a deteriorated market triggered price dips.
Traders eye Friday’s Grayscale vs. SEC verdict
Market participants will likely shift focus to Friday’s Grayscale vs SEC ruling. The verdict is essential as it will offer market direction. A win for Grayscale will increase the chances of Bitcoin ETF approval this year.
Grayscale seems confident of a win. For instance, they are looking to onboard a senior ETF Associate as the lawsuit ruling nears the end. Moreover, GBTC remains strong even as Bitcoin prices weaken.
What triggered Bitcoin’s sudden fall
Reports of tech firm SpaceX selling its $373M Bitcoin staff grabbed market attention recently. Considering the company’s influence and its CEO Elon Musk, such updates catalyzed downside pressure in the crypto sector, which resorted to downsides two hours after the news.
Also, the US Fed’s expectations of further rate hikes likely influenced price declines in the broader market. The hikes impact risk assets, resulting in possible pullbacks. Moreover, an absence of positive news recently and the ongoing gloomy market conditions bolstered the sell-off.
Bitcoin price outlook
Bitcoin recorded a swift 8% dip on 18 August, leaving the broad market tumbling. Various factors, including the overall economic landscape and SpaceX’s Bitcoin sale, catalyzed the sudden price decline.
However, Bitcoin noted a minor recovery shortly after the rapid drop, changing hands at $26,430 at press time. Speculations of the SEC potentially authorizing an Ether Futures ETF product likely triggered the slight price surge.
The post Traders wait for Grayscale vs. SEC verdict as liquidations deteriorate crypto markets appeared first on Invezz.
