Why Is Bitcoin (BTC) Down Today? (2024)

Bitcoin dominates the cryptocurrency landscape and is widely known among crypto investors. As the largest cryptocurrency in the world, it achieved a new all-time high of $73,750 on March 14, 2024. However, BTC has been undergoing corrections for some time now. As of August 5, 2024, it was trading at $50,112 with a market capitalization of $1.01 trillion, marking a 29.99% decline from its peak. Bitcoin has seen a 16.85% drop over the last 24 hours and 27.73% in the previous seven days. It was dropping in the blink of an eye. As of today, August 6, 2024, it has stabilized at around $55,444, up by 4.25% in the last 24 hours.

Let’s delve into the current state of the Bitcoin market and the reasons behind the sudden price dip.

How is Bitcoin Performing September 2024?

Bitcoin is currently down. Investors fear a U.S. recession could be on the horizon, and rising geopolitical worries are also weighing on cryptocurrencies. BTC is nearly down by 24.75% from it’s all-time high in March.

The value of Bitcoin had declined around 24.75% from its peak of $73,750, with BTC dropping below $50,000 in the first week of the month.Currently, the markets are grappling with regulatory exploration, with the Securities and Exchange Commission’s renewed vigor against significant players in the crypto world like Consensys.

Let us see what the crypto experts have to say about the recent downfall:

CoinSwitch Market Desk said that bitcoin has plummeted to $53,000, marking a significant decline that reflects broader concerns in the crypto sector. This downturn results from a series of adverse market events, including regulatory pressures and macroeconomic factors—the US macro data and the Japanese stock crash were the key reasons to note here. Investors fear a prolonged bearish trend and react with increased volatility and panic.

He also added that the crypto ecosystem always has a flip side. Morgan Stanley plans to offer Bitcoin exchange-traded funds (ETFs) to its wealthy clients, marking a significant move in the financial services sector. This initiative aims to expose affluent investors to crypto assets while navigating regulatory complexities. The bank’s decision reflects a growing interest in digital assets among institutional investors.

Mr. Himanshu Maradiya, Founder & Chairman of CIFDAQ Blockchain Ecosystem Ind Ltd, said, “The recent selloff in cryptocurrency markets, including Bitcoin, can be attributed to a confluence of economic factors and one of the significant repayments in history. However, this correction phase will pave the way for more stable growth as the macroeconomic landscape stabilizes. Our analysis suggests that despite short-term fluctuations, the underlying fundamentals of Bitcoin and the broader crypto ecosystem remain strong, positioning them for resilience and long-term potential.”

Mr. Sathvik Vishwanath, Co-Founder and CEO of Unocoin, says that Bitcoin is experiencing its most significant weekly drop since November 2022. The price of Bitcoin has fallen nearly 25% over the past week, marking the steepest decline since the FTX collapse in November 2022. The decline continued into Monday’s Asian session, sending the cryptocurrency to its lowest point since February. Key factors contributing to this decline include escalating tensions in the Middle East and US employment data, which have led investors to move away from risk assets.

Additionally, he said that a technical analysis shows that Bitcoin has broken below the lower trendline of the wedge pattern, indicating further declines. Investors should closely monitor the critical support levels of $56,000, $47,000, $40,000, and $35,000. A rally above these levels could indicate a potential reversal, while a continued collapse could lead to further losses.

Shivam Thakral, CEO of BuyUcoin, said that the global crypto market has witnessed a significant shift, with a market cap of $1.01 trillion reflecting a 15.45% decrease over the last day. However, Bitcoin has dropped below $55,000. The recent decline in Bitcoin’s price is due to a hike in interest rates by central banks worldwide, geo-political tension in the Middle East, and concerns related to the US economy, which have affected investor sentiment. However, Bitcoin’s strong market presence reflects the potential for recovery and growth as market conditions stabilize.

Saravanan Pandian, CEO of KoinBX, said several factors could likely be attributed to BTC’s recent dip. While prices in the crypto market remain volatile, here are a few reasons why we saw the recent dip:

To begin with, the German government transferred $172 million worth of Bitcoin to crypto exchanges. In the first couple of weeks in July, the German government had shared over ~3000 BTC to some of the exchanges, a sign that it was planning to sell off.

The other reason was (and still is) Mt. Gox. The defunct exchange moved nearly $3 billion worth of bitcoin, most probably as a part of the plan to repay its creditors. The fear sentiment dominated the fear and greed index, as people watching the move believed the recipients would dump the bitcoin, further lowering its price.

In August, there were some fears of geopolitical tension in the Middle East and potential chance of recession in the US that prompted the sell-off, with investors seeking safer assets. Another likely factor that could have contributed to the dip was Federal Reserve Chairman Jerome Powell saying they would keep the benchmark interest rates unchanged at the current 525-550 basis points.

Bitcoin Price Movement (One-Month Data)

As of August 6, 2024:

Bitcoin set a new record of $73,750 on March 14, 2024, with a market capitalization of $1.44 trillion. Following this record, it experienced a dip, and the market is currently undergoing a correction. The market sentiment shifted from extreme greed to greed and now 17 extreme fear.

Over the past week, Bitcoin has experienced a 16.44% decreased, down by 24.75% from its all-time high. As of August 6, 2024, BTC is trading at $55,531 with a market capitalization of $1.10 trillion.

Why Does Bitcoin Fluctuate?

The start of this year saw a surge in Bitcoin prices, with the cryptocurrency surpassing its all-time high multiple times in March 2024, reaching as high as $73,750. However, in the last one month, BTC prices dropped below $60,000. As of August 6, it is trading at $55,531, marking a 24.75% decrease from its all-time high.

The overall cryptocurrency market, including Bitcoin, has experienced price fluctuations due to unforeseen macroeconomic headwinds and the recent impact of Spot ETH ETFs. Let’s explore other factors that have contributed to the fluctuation in Bitcoin prices:

• U.S. SEC approves spot ethereum ETFs.

• Federal Reserve’s interest rate decision.
• Spot Bitcoin ETFs.
• Post-Russia-Ukraine war effects.
• Instability in the U.S. banking system.
• Fear of inflation worldwide.
• High interest rates in the U.S. and the UK.
• Collapse of the largest crypto exchange FTX.

Tips To Consider Before Investing In Bitcoin

Investing in cryptocurrencies is a very appealing concept to people. When it comes to cryptocurrency, Bitcoin is a must-must investment, but you need to consider some tips before you go ahead and invest in Bitcoin.

• It is advisable and smart to invest 5% to 10% of your overall portfolio in Bitcoin.
• Treat your cryptocurrencies as a long-term investment plan.
• Analyze the market volatility of Bitcoin and then invest wisely.
• To maximize your returns, research thoroughly the best times to purchase and sell Bitcoin.

It is natural for you to wonder whether Bitcoin is a safe investment choice, considering its instability and volatility. The entire value of Bitcoin is based on speculation, and it is not a regulated form of investment like mutual funds or equities. It would be a great choice to consult a financial advisor who will guide you through the process of investing in cryptocurrency that best suits your financial goals.

Once you have a hold and a bit of understanding of cryptocurrency and are ready to invest in Bitcoin, the next thing you need to know is how to buy Bitcoin from India:

Step 1: Choose your crypto exchange and create a free account through their web portal or an application.

Step 2: Register and verify your identity via their platform.

Step 3: You will see a “BUY” tab, which has many cryptocurrencies associated with it. To buy Bitcoin, click the link attached to it.

Step 4: Buy Bitcoin through the link and select any mode of payment, such as credit or debit card, net banking, or adding funds in the form of INR.

Step 5: Once you make the payment and purchase bitcoin, it will be stored in your exchange account or personal digital wallet. You can sell it anytime you wish or simply trade it for other cryptocurrencies. You can also stake it to obtain passive income.

Detailed Article: How To Buy Bitcoin in India

Bottom Line

Investing in Bitcoin, particularly from India, is not as simple as it seems due to the Indian government’s active interest in regulating the crypto market and discouraging investment. If you are determined to invest despite regulatory concerns, ensuring that you haven’t allocated all your savings and are adequately diversified is essential. Conducting thorough research and monitoring cryptocurrency trading globally can help you mitigate risks effectively.

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