May 25, 2024
Bitcoin Price Today is $57,995, Hits 2-Month Lows
Bitcoin price today

Bitcoin Price Today is $57,995, Hits 2-Month Lows

Wednesday, May 01, 2024: Bitcoin Price Today is $57,995, witnessed a sharp decline, hitting fresh 2-month lows on May 1st as market anxiety led to significant losses for traders, totaling half a billion dollars. According to data from TradingView, BTC price plummeted during the Asia session, reaching $57,082 on Bitstamp, its lowest level since February. This downturn brought second-quarter losses to over 20%.

BTC/USD 1-day chart. Source: TradingView

Factors Contributing to the Decline

Several factors contributed to the negative sentiment across the cryptocurrency market. Janet Yellen’s hawkish fiscal policy moves and a legal judgment against crypto exchange Binance and its founder Changpeng Zhao exacerbated the situation. Yellen’s actions were particularly concerning as they were expected to boost liquidity but instead had the opposite effect, disappointing risk asset investors.

BTC/USD monthly returns (screenshot). Source: CoinGlass

Financial commentator Tedtalksmacro highlighted Yellen’s decision: “Yellen deciding to pull liquidity from the market, instead of drawing down on reserves to fuel liquidity higher.” This move added to the downward pressure on Bitcoin and other cryptocurrencies.

Analysts’ Views and Market Data

Market analysts had been warning about potential downside risks for Bitcoin and altcoins, especially after the market had been stagnant since mid-March when BTC/USD hit all-time highs. Key support levels started to fade, with $60,000 no longer offering consolation to bullish investors. Popular trader and analyst Rekt Capital advised caution, suggesting, “If you must panic, at least wait for the almost 2-month low-old support to break down first.”

Charles Edwards, founder of Capriole Investments, suggested that the current situation resembled a distribution pattern, stating, “‘Sell in May and go away.’ This looks like distribution to me.”

“As long as we trade below $61.5K, scenario (1) is technically more likely. A strong reclaim of $61.5K would give some hopes to the bulls for scenario (2). A flush would also be good for the sustaining continuation of the bull market, the sooner we get one, the better the long opportunities are.”

BTC/USD chart. Source: Charles Edwards

According to CoinGlass, 24-hour crypto liquidations amounted to $470 million, with Bitcoin accounting for $160 million and Ethereum at $120 million. Despite Bitcoin’s April monthly close happening before its dip below $60,000, April 2024 marked the worst month for the pair since the 2022 bear market, as Bitcoin hit 2-month lows.

Crypto liquidations (screenshot). Source: CoinGlass

Image by frimufilms on Freepik

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