The cryptocurrency space, alongside most risk-on assets like stocks, plummeted hard on Friday amid reports about the dire conditions of the US economy.
However, BTC and the altcoins were harmed even during the weekend due to their ability to be traded 24/7. BTC slipped below $60,000 for the first time in weeks, which prompted questions about how low it could actually go.
Bitcoin’s Nosedive: When Will It End?
It was less than a week ago, on Monday when the primary cryptocurrency skyrocketed to $70,000 for the first time since early June. This rally came on the heels of Donald Trump’s pro-bitcoin speech during the 2024 BTC conference in Nashville.
However, the asset couldn’t keep the momentum going and dropped by four grand on the same day. The landscape worsened by the end of the week, and the asset dumped to $62,200 on Friday after the US released its July jobs report, which outlined the growing unemployment rates to a 3-year high.
Wall Street crashed as well, but BTC kept losing value during the weekend as it never stops trading. This culminated earlier today with a price dip to under $60,000, which became a new 3-week low.
According to the popular AI chatbot – Perplexity, BTC’s downfall could continue in the following few weeks. In fact, it predicted a retreat to the “mid-to-low $50,000 range if the current bearish momentum persists.”
Furthermore, Perplexity outlined another painful scenario in which BTC could drop to somewhere between $40,000 and $50,000 “if it follows patterns seen in previous bull markets, where significant pullbacks occurred.”
What Drives the Price South?
Perplexity named a few reasons why BTC went down in the past week and keeps dropping. First, it focused on the outflows from the Bitcoin-related investment financial vehicles, such as the US-based ETFs. As reported yesterday, Friday was particularly negative day with more than $230 million leaving the largest ETFs.
Additionally, the AI chatbot mentioned the “lack of bullish momentum” since BTC dropped below critical support levels, such as $62,000, but so far has managed to remain above the psychological $60,000 line despite the brief dip from earlier. However, a decisive break of that level could exacerbate the downfall further.
“Market analysts have noted a general nervousness among investors, particularly in light of upcoming economic indicators that could influence Federal Reserve policies.” – concluded Perplexity.
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