Key points
- Bitcoin has fallen 17.7% in 24 hours, trading at $50,193.32.
- Macroeconomic factors and geopolitical tensions are driving the cryptocurrency market down.
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Bitcoin (BTC) is priced at $50,193.32 after falling 17.7% over the past 24 hours, according CoinGecko. The price dropped further but recovered near the $49,000 level and Bitfinex analysts highlighted that this area could be a short-term support.
“We expect short-term support to be established around the 48,900 region. If there is no bullish momentum, this region could be retested, and the macroeconomic environment will determine the future price behavior,” the analysts added.
The cryptocurrency sell-off is driven by macroeconomic factors. reported According to Crypto Briefing, the trigger for this massive correction appears to be the Bank of Japan’s unexpected interest rate hike last week, which sent the yen soaring and Japanese stocks tumbling. As a result, the Nikkei index has fallen by roughly 15% in three sessions and is now 20% below its mid-July peak.
Furthermore, Bitfinex analysts also point to the disappointing US jobs report and rising unemployment as other factors behind the current crisis. “Furthermore, the Sahm rule, which has accurately predicted previous recessions, has come into play in the US, raising fears of a recession.”
Ben El-Baz, CEO of HashKey, also highlighted rising geopolitical tensions in the Middle East as another factor that could have contributed to the current crash. “The escalating conflict between Iran and Israel has the potential to completely erupt. The market, concerned about rising risks in the Middle East, has turned to safe havens.”
In addition, price declines caused by the above-mentioned factors triggered a series of stop-loss thresholds for Ethereum (ETH) leveraged positions, which added pressure to ETH and contributed to a further decline.
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