Crypto Market Down: BTC Sees 3-Week Low at $60.5K

The drop in the value of stocks around the world is casting a negative light on the crypto market. This could suggest they are going to decline value

A massive sell-off occurred in the crypto market, wiping out over $150 billion in value within two days. The total market cap has slipped to $2.1 trillion, marking the lowest level in several weeks.

Bitcoin (BTC) price saw a significant drop, reaching lows of $60,500. This price level represents BTC's lowest point since mid-July. The rapid decline follows a brief rally to $70,000 on Monday, spurred by Donald Trump's speech at the 2024 Bitcoin Conference in Nashville.

However, pessimism quickly set in, fueled by a weaker-than-expected jobs report revealing the highest unemployment rate since October 2021 at 4.3%.

As fear escalated, billions of dollars were withdrawn from spot Bitcoin ETFs, adding further selling pressure to the asset. Despite Bitcoin's sluggish performance in recent times, whales continue to accumulate BTC, moving their holdings off exchanges.

According to Glassnode's whale net position change metric, Bitcoin whales holding at least 1,000 BTC have been withdrawing more Bitcoin from exchanges than at any point in the last nine years. Approximately 64,000 BTC have been removed from whale exchange balances over the last 30 days.

Currently, BTC price shows a slight recovery, hovering around $61,900. Its market capitalization has dropped to just below $1.22 trillion, with dominance over altcoins hitting 55%.

Ethereum Loses $3,000 Support LineThe situation is not much better for Ethereum (ETH), which has fallen below the crucial $3,000 mark. The cryptocurrency trades at a 4% loss, currently selling at around $2,850. Notably, ETH has slipped below the 200 Exponential Moving Average (EMA), which typically signals a bearish price action.

Since November 2023, ETH has lost this key technical indicator twice. Data from Coinglass reveals that ETH liquidations reached $80 million in the last 24 hours, with $71 million in longs and $8.6 million in shorts.

ETH's support levels now lie between $2,852 and $2,803, an area that buyers have defended on multiple occasions over the last four months. If this holds, we could see a settling of prices before another attempt upward.

The 50-day Simple Moving Average (SMA), however, is now at $3,357 and could present a significant resistance. Losing the $2,803 support would likely cancel out this bullish outlook, especially considering the bearish sentiment from external factors like the Mt. Gox BTC repayment.

Altcoins See Sharp DropsElsewhere in the crypto market, steeper price declines are evident. Solana (SOL), Toncoin (TON), and Uniswap (UNI) have all registered price drops of over 5% in the last 24 hours. Other altcoins also saw substantial losses, with FLOW down 12%, MKR down 9.5%, and WIF down 9%.

Over the last three days, Genesis Trading has been shifting around 32,256 BTC and 256,775 ETH, valued at roughly $2.1 billion and $838 million, respectively, according to Arkham Intelligence. This action, as part of the ongoing bankruptcy process, is likely adding to the market's sell-side momentum.

The total value of all crypto assets in the market has seen a decrease of $100 billion in a day, adding to the massive sell-off.

As global equity markets show signs of weakness, risk assets are facing an air of uncertainty. The Japanese stock market, Nikkei, saw a drastic 6% plunge on August 1, marking its steepest decline since the “Black Monday” crash of 1987. If the sell-off extends into the cryptocurrency markets, we could see a serious threat to Bitcoin's $60,000 support level.

Despite any short-term weakness, analysts largely maintain a bullish outlook for Bitcoin in the long run. Recently, prominent analyst Willy Woo predicted that if financial institutions allocate just 3% of their portfolios to Bitcoin, it could drive the cryptocurrency’s price to $700,000.