Bitcoin (BTC) experienced a significant drop in value on May 1, resulting in traders losing around half a billion dollars. The BTC/USD pair reached its lowest levels since February, falling to $57,082 on Bitstamp. This decline added to the second quarter losses, which now exceed 20%. The market sentiment towards cryptocurrencies worsened due to hawkish fiscal policy moves by United States Treasury Secretary Janet Yellen, a legal judgment against Binance, and its founder Changpeng Zhao. Yellen’s decision to withdraw liquidity from the market instead of increasing it had a negative impact on risk assets. Even before this decline, warnings had been issued for Bitcoin and altcoins as the market had been stagnant since mid-March. Key support levels were weakening, and neither $60,000 nor short-term holder realized price offered any consolation to bulls. Charles Edwards, founder of Capriole Investments, identified two potential paths for the BTC price trajectory, one of which he described as “distribution.” In the past 24 hours, approximately $470 million worth of cryptocurrencies were liquidated, with Bitcoin accounting for $160 million and Ethereum for $120 million. Despite the April monthly close occurring before BTC/USD fell below $60,000, April 2024 became the worst month for the pair since the 2022 bear market. It is important to note that this article does not provide investment advice or recommendations, and readers should conduct their own research before making any decisions.
Bitcoin price plummets to its lowest point in 2 months, losing support at $60K.