Bank

Memecoin

Bitcoin

Read

<ul>
  
 <li>Bitcoin dropped below $61,000, causing over $260 million in long liquidations.</li>   
 <li>Rising US unemployment rate (4.3%) spooked investors, leading to market downturns.</li>   
 <li>Geopolitical tensions and Mt. Gox/Genesis Bitcoin distributions added pressure on Bitcoin prices</li> 
</ul>   
<p><a href="https://bitcoin.org/">Bitcoin</a> experienced a significant drop below $61,000, resulting in over $260 million in long liquidations. According to the post by a renowned crypto analyst, Ash Crypto, several factors have contributed to this sharp decline. Each of these factors plays a crucial role in the broader financial landscape.</p>   
<h2 class="wp-block-heading" id="h-rising-unemployment-rate-in-the-us-strengthening-japanese-yen-and-interest-rate-hike">Rising Unemployment Rate in the US, Strengthening Japanese Yen, and Interest Rate Hike</h2>   
<p>The recent rise in the US unemployment rate to 4.3% has spooked investors. Higher unemployment can signal a weakening economy, potentially leading to a recession.&nbsp;</p>   
<p>As a result, both the stock market and the cryptocurrency market have seen a downturn. Investors are wary of holding riskier assets, contributing to Bitcoin's decline.</p>   
<p>The Bank of Japan's decision to raise interest rates for the first time in 17 years has had a ripple effect across global markets. Previously, borrowing yen was essentially free, but the new interest rates have changed that dynamic.&nbsp;</p>   
<p>Investors are now pulling money out of US equities and other risk-on assets to take advantage of the stronger <a href="https://www.xe.com/currency/jpy-japanese-yen/" target="_blank" rel="noreferrer noopener nofollow">Japanese Yen</a>. This shift in investment strategies has added pressure on Bitcoin, leading to further sell-offs.</p>   
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter">
 <div class="wp-block-embed__wrapper">
   https://twitter.com/Ashcryptoreal/status/1819614723685470444 
 </div>
</figure>   
<h2 class="wp-block-heading" id="h-fear-of-global-conflict-and-impact-of-mt-gox-and-genesis-distributions">Fear of Global Conflict, and Impact of Mt. Gox and Genesis Distributions</h2>   
<p>Geopolitical tensions have also played a part in Bitcoin's recent struggles. For the fifth time this year, fears of World War III have surfaced.&nbsp;</p>   
<p>During times of uncertainty, investors typically move away from riskier investments like cryptocurrencies. This <a href="https://cryptonewsland.com/bitcoin-volatility-drives-fear-and-greed/" target="_blank" rel="noreferrer noopener">fear-driven behavior</a> has contributed to Bitcoin's decline as people seek safer assets.</p>   
<p>The ongoing distribution of Bitcoin from the Mt. Gox settlement and the recent start of the Genesis distribution have also influenced the market. Yesterday, Genesis sent over $1 billion worth of Bitcoin, which the market interpreted as a sign of an impending dump.</p>   
<p>As the market digests these events, some analysts believe that the Federal Reserve might react with rate cuts. Meanwhile, market data signal <a href="https://cryptonewsland.com/whales-buy-as-retail-investors-sell/" target="_blank" rel="noreferrer noopener">BTC's potential rally</a> to the upside as whales accumulate more coins daily.</p>   
<h4 class="wp-block-heading" id="h-read-also">Read Also</h4>   
<ul class="wp-block-yoast-seo-related-links yoast-seo-related-links">
  
 <li><a href="https://cryptonewsland.com/traders-predict-bitcoin-surge-after-us-unemployment-rate-reveal/">Traders Predict Bitcoin Surge After US Unemployment Rate Reveal</a></li>   
 <li><a href="https://cryptonewsland.com/bitcoins-fall-below-61k-miners-etfs-and-government-sales-drive-decline/">Bitcoin's Fall Below $61K: Miners, ETFs, and Government Sales Drive Decline</a></li>   
 <li><a href="https://cryptonewsland.com/japan-explores-digital-yen-expert-panel-to-assess-cbdc-feasibility/">Japan Explores Digital Yen: Expert Panel to Assess CBDC Feasibility</a></li>   
 <li><a href="https://cryptonewsland.com/metaplanet-buys-20-38-btc-finishes-6-26m/">Metaplanet Buys 20.38 BTC, Finishes $6.26M Bitcoin Plan, Stock Jumps 19%</a></li>   
 <li><a href="https://cryptonewsland.com/beer-token-plummets-amidst-insider-sell-off/">Solana's BEER Token Plummets 85% Amidst Insider Sell-Off Indicating Memecoin Scam</a></li> 
</ul> 
<p>The post <a href="https://cryptonewsland.com/bitcoin-drops-below-61k-sell-off-factors/">Bitcoin Plummets Below $61K: Key Factors Behind the Massive Sell-Off Explained</a> appeared first on <a href="https://cryptonewsland.com">Crypto News Land</a>.</p>

Bitcoin Plummets Below $61K: Key Factors Behind the Massive Sell-Off Explained

Table of Contents

Crypto News Land

Other articles published on Aug 3, 2024

Shiba Inu whale watch: Why large investors moved 3.8T SHIB in 24 hours

Economist Raoul Pal on Crypto Plunge: Literally Nothing, Regular Day in Trenches

Ledger Self-Custody Introduces Stax & Flex

How to earn on Beam Hub- the next gen crypto gaming world

Bitcoin price plummets to $60K, what’s behind the massive sell-off?

CFTC’s subpoena targets BitBoy’s former company Hit Network over suspected fraud

Join our free newsletter for daily crypto updates!