Bitcoin Price Dips Below $65K in Americas After Wednesday’s Decline
The cryptocurrency market saw some significant movements recently. Bitcoin (BTC) struggled to maintain levels above $65,000 after dropping below $64,000 during American trading hours. Currently, BTC is hovering around $64,500, marking a 1% decrease compared to 24 hours ago. The broader market, represented by the CoinDesk 20 Index, is down by approximately 2.4%. This decline in the crypto market followed a sell-off in traditional equities, with the Nasdaq index plummeting by 2.7% and the S&P 500 by 1.3%. Market strategist Joel Kruger from LMAX Group noted that the crypto rally could lose momentum if the stock market correction deepens, although cryptocurrencies might serve as a safe haven for investors seeking refuge from stock market volatility in the long run.
In another development, the likelihood of President Joe Biden withdrawing from the upcoming election rose to 68% on the crypto-based prediction platform Polymarket. President Biden’s announcement of testing positive for Covid-19 has fueled speculation about his candidacy. His performance during the campaign has been under scrutiny, especially after a debate with Donald Trump, who is perceived as a more crypto-friendly candidate. The crypto market has been reacting to Trump’s chances of winning, with Bitcoin’s surge to over $65,000 coinciding with an attack on Trump, which was interpreted as a boost to his electoral prospects.
Additionally, several cryptocurrencies faced significant losses following a cyberattack on the Indian crypto exchange WazirX. The exchange’s native token WRX dropped by 15% to slightly above 14 cents, while meme coin Shiba Inu (SHIB) tumbled nearly 10%. The attacker managed to abscond with over $230 million in customer assets, including $100 million in SHIB and $52 million in ETH. Despite the impact on specific tokens, other cryptocurrencies remained relatively stable in dollar terms but experienced substantial losses when paired against the Indian rupee. For instance, the bitcoin-rupee pair saw an 11% decline to 5.1 million rupees ($60,945), presenting a significant discount compared to other exchanges like CoinDCX. Moreover, the USDT-INR pair on WazirX decreased by 8%.
Looking at the market structure, the chart of the day highlights CME’s dominance in the global notional open interest in standard futures linked to Bitcoin and Ether. The global derivatives giant accounts for 83% of the total open interest in BTC futures and 65% in ETH futures, indicating a growing institutional presence in the crypto market.
Recent trending posts in the crypto space include reports of Mt. Gox creditors facing failed login attempts during repayments, Polygon’s announcement of a migration to POL token from MATIC scheduled for September, and the submission of final forms by most Ether ETF applicants, potentially paving the way for Ether ETF approvals in the future.
