URGENT UPDATE: Bitcoin’s price has plunged to a six-month low, sinking below $95,000 on Friday before a slight recovery by early afternoon ET. Currently, Bitcoin sits at $95,400, marking a 3.2% decline for the day and a staggering 15% drop over the past month. This significant downturn has ignited fears among crypto traders that the worst may not be over.
The cryptocurrency market is closely mirroring the stock market’s recent performance. As of now, the S&P 500 is down 1.2% this month, while the Dow Jones has dipped by 0.6%, reflecting a broader trend affecting both traditional and digital assets. Traders often believed they were part of a new financial system, independent from Wall Street; however, current price movements suggest otherwise.
The alarming trend is exacerbated by the “classic five-phase Wyckoff Distribution” chart, which CoinTelegraph warns could indicate a potential plunge to as low as $86,000 for Bitcoin. As traders scramble to interpret this data, it highlights the unpredictable nature of cryptocurrency investments.
“If you think the underlying economy is struggling, you should not bank on Bitcoin going up,” warns an industry analyst.
Just three weeks ago, predictions were overly optimistic, with analysts suggesting Bitcoin could soar to $200,000 by the end of this year—specifically in just six weeks. However, the reality is starkly different. Bitcoin reached an all-time high of over $126,000 on October 6 but has faced substantial selling pressure since then. Reports indicate that long-term holders have sold approximately 815,000 BTC, valued at nearly $79 billion, in the past 30 days.
Other major cryptocurrencies are also feeling the heat. Ethereum is down 1.5% today and has decreased by 30% over the past three months, while XRP has dropped 2.4%, with a total decline of 27.4% in the same timeframe. The only exception appears to be Binance’s BNB, which has increased by 0.4% today but is still down 23.4% from its peak last month.
As the crypto market continues to grapple with these developments, traders and investors are left to ponder the immediate future. If the U.S. economy shows signs of strength, some believe Bitcoin could rise again. Conversely, a weak economy could lead to further declines in Bitcoin and other cryptocurrencies.
Moving forward, market watchers will need to stay vigilant as both the stock market and cryptocurrency values remain closely linked. With uncertainty looming, traders will be closely monitoring economic indicators and market trends, preparing for potential volatility ahead.
