Bitcoin tumbled over 7.5% on Friday and resumed the losses while piercing the important barrier of $80,000 and plumbing three-month lows, on track for the heftiest monthly loss since 2022 on risk aversion.
The crypto market is still tense amid a lack of positive stimuli, while US stocks continue to tumble on Wall Street, led by the tech sector.
Prices
Bitcoin tumbled over 7.5% at Bitstamp today to $78,018, the lowest since November 10, with a session-high at $84,798.
On Thursday, bitcoin rose 0.7%, the first profit in five days on quick short-covering.
Crypto Market Value
The market value of cryptocurrencies fell by $175 billion on Friday to a total of $2726 trillion, the lowest since November.
Monthly Trades
Bitcoin is down over 11% in February so far, on track for the largest monthly loss since June 2022.
Positive Stimulus
Bitcoin started the year with strong momentum, underpinned by US President Trump’s positive stance on the crypto industry, with traders expecting a more supportive and clear regulatory framework for the crypto market.
But the steam has gone out of the market since Trump’s executive crypto order in January, as it was more conservative than expected, especially when it comes to forming a strategic bitcoin reserve.
And with the lack of fresh new stimuli, the market is now waiting for more signals on the future of regulations and institutional demand directions, making prices more volatile in recent weeks.
Wall Street
US stock indices extended their heavy losses on Thursday amid mounting monetary policy uncertainty and global trade tensions.
S&P 500 fell 1.6% to six-week lows, while NASDAQ slumped 2.75% to three-month lows, led by the tech sector.
