Top Factor Behind Bitcoin (BTC) Decline Amid Rising Stock Prices
Despite the US stock market’s strength, Bitcoin, the leading cryptocurrency by market cap, is experiencing a decline in its price. CoinGecko data shows that Bitcoin dropped to $64,544 from a peak of $66,436.
The recent downturn in Bitcoin’s price may be linked to a selling spree initiated by the German government. Analytics platform Arkham Intelligence reported that the German government transferred $65 million to two likely exchange deposits, including Coinbase. Observations from Ki Young Ju, the CEO of CryptoQuant, suggest that selling pressure is predominantly originating from the Coinbase exchange.
In a separate development, the German government transferred $130 million worth of Bitcoin to various exchanges, including Kraken and Bitstamp, while still holding a significant $3.05 billion worth of Bitcoin. Notably, German authorities confiscated 50,000 Bitcoins from the now-defunct piracy website Movie2k.to in 2013.
Meanwhile, the S&P 500 index briefly exceeded 5,500 for the first time today before retracting some gains. The surge in the US stock market is largely attributed to the remarkable performance of tech giant Nvidia. With a market capitalization of $3.4 trillion, Nvidia has become the most valuable public company globally, surpassing France’s GDP and the entire crypto industry.
Many traders anticipate that the U.S. Federal Reserve will reduce rates before November, potentially offering a glimmer of hope for the struggling cryptocurrency market. A looser monetary policy could prove beneficial for cryptocurrencies.
In summary, the divergence in Bitcoin’s price performance compared to the US stock market, the German government’s involvement in cryptocurrency transactions, and Nvidia’s market dominance are key factors influencing the current cryptocurrency landscape. Traders are closely monitoring these developments for potential market implications.
