Bitcoin Price Falls for Fourth Consecutive Session amid Cryptocurrency Selloff

Bitcoin Price Falls for Fourth Consecutive Session Amid Cryptocurrency Selloff

Bitcoin price took a hit on Friday, trading lower for the fourth consecutive session as part of a wider selloff in the cryptocurrency market. The price of Bitcoin was at $55,510, down 5.82% over the past 24 hours, with a market capitalization of $1.11 trillion. Despite this recent dip, Bitcoin has still rallied 35.39% so far this year.

Other digital assets also saw declines, with Ethereum falling 8.4% to $2,954.16, Solana down 9.55% to $123.08, and XRP declining 12.48% to $0.400.

The drop in Bitcoin price can be attributed to various factors, including a decrease in demand for US Bitcoin exchange-traded funds and political developments in the US. Additionally, the pending approvals for debut US ETFs for the second largest token, Ether, have also impacted prices.

A recent report from Bloomberg highlighted that administrators of the failed Mt. Gox exchange are returning a significant amount of Bitcoin to creditors, raising speculation about potential sell-offs. This move, along with other market pressures, has contributed to the downward trend in cryptocurrency prices.

On the other hand, global equity markets have been performing well, with the MSCI Inc.’s gauge of global stocks near a record high. The correlation between Bitcoin and the global stock index is decreasing, indicating a shift in investor sentiment.

Investors are now eagerly awaiting the release of US nonfarm payrolls data, which could provide insights into the potential for interest rate cuts by the US Federal Reserve. Weak economic data in the US has raised expectations for a Fed rate cut in the coming months.

Overall, the cryptocurrency market remains volatile, with various factors influencing price movements. Investors are advised to stay informed and cautious in their trading decisions.

(With inputs from Bloomberg)