Bitcoin Attracts Attention with Its Recent Depreciation

As of the morning of Sept. 4, 2024, the cryptocurrency fell as low as $55,600, but the search for balance continues at levels close to $56,500 with reaction purchases.

Bitcoin price fell sharply on Friday, September 4, 2024, dropping to a low of $55,600 on major exchanges. However, the cryptocurrency found some support at higher levels, trading around $56,500 as buyers stepped in with reaction purchases.

This decline in Bitcoin price was largely driven by two key factors.

Firstly, Bank of Japan Governor Ueda hinted at the possibility of another rate hike, depending on the state of the economy. Following this statement, the USD/JPY pair dropped from 147.00 to 145.50. Moreover, Japan’s stock market slid, losing close to 4% of its value.

These developments sparked unease in global markets, increasing the selling pressure on risky assets like Bitcoin.

Secondly, weaker-than-expected U.S. economic data led to sharp declines in stock markets. Cryptocurrencies followed closely, tracking the performance of NVIDIA stock, which saw a decline of 9.53%. This downturn also negatively impacted cryptocurrency markets, particularly Bitcoin.

Bitcoin price

Bitcoin price, which rose as high as $59,800 on global exchanges, now trades at a low of $55,600. During the morning hours, BTC price shows resilience at around $56,500, which serves as a critical support level.

Ethereum price

Ethereum price also experienced a similar decline, being the second-largest cryptocurrency in the market. After dropping to the $2300 threshold, Ethereum price found some support and now trades close to $2370 with reaction purchases.

For ETH, the $2300 level acts as a crucial support point.

These recent developments have led to volatility in cryptocurrency markets and a decrease in risk appetite. Notably, concerns related to Japan and NVIDIA are causing Bitcoin and other cryptocurrencies to lose value.