Bitcoin (BTC) hit a multi-month low on May 1, with traders losing $500 million due to market instability.
BTC price decline approaches $57,000
BTC price losses increased during the Asian session, with BTC/USD hitting $57,082 on Bitstamp, according to data from Cointelegraph Markets Pro and TradingView.
That marked the lowest level since February and pushed second-quarter losses to more than 20%.
U.S. Treasury Secretary Janet Yellen’s hawkish fiscal policy moves combined with legal rulings against cryptocurrency exchange Binance and its founder Changpeng Zhao have contributed to worsening sentiment toward cryptocurrencies in general. I did.
Cointelegraph previously reported on the assumption that liquidity would be boosted by Yellen, who ultimately took steps to achieve the opposite: a setback for risk assets across the board.
“Rather than withdrawing reserves to increase liquidity, Yellen decided to take liquidity out of the market,” financial commentator Tedtalksmacro wrote. reaction At X (formerly Twitter).
“Risk appetite has taken a hit.”
There were warnings about Bitcoin and altcoins even before the decline accelerated, and markets have been shaking since BTC/USD hit an all-time high in mid-March.
Now the key support level is weakening and neither $60,000 nor short-term holders are any more bullish.
“If you have to panic, at least wait for the nearly two-month old support line to break first,” said popular trader and analyst Rekt Capital. said X number of subscribers the previous day.
Investigating the latest events, Charles Edwards, founder of Capriole Investments, a quantitative Bitcoin and digital asset fund, outlined two paths for the BTC price trajectory.
“’Sell in May and leave.’ “To me, this looks like a distribution,” he said. summary In the X post.
“As far as trading below $61,500, scenario (1) is technically more likely. A strong recovery of $61.5K would give bulls some hope for scenario (2). A flush would also be good for the continuation of a bull market. The sooner we get a flush, the better our long chances are.”
Bitcoin liquidates $160 million in 24 hours
At the time of this writing, 24-hour cryptocurrency clearing amounts to $470 million, according to the latest live data from monitoring resource CoinGlass.
Related: ‘Pretty ordinary stuff’ – Traders seem unfazed by Bitcoin correction
Bitcoin accounted for a total of $160 million, while Ethereum (ETH) accounted for $120 million.
April’s monthly close meant that April 2024 was the worst month since the 2022 bear market, even before BTC/USD fell below $60,000.
This article does not contain investment advice or recommendations. All investment and trading activities involve risk and readers should conduct their own research when making any decisions.