While the stock market has recovered somewhat from its recent crash, the price of Bitcoin and other cryptocurrencies has fallen today. The leading cryptocurrency by market capitalization has fallen nearly 2% over the past seven days, with investors fearing further declines. On Sunday morning, BTC fell below $59,280, and other cryptocurrencies also saw slight declines. But what caused this decline?
The correction last week did not seem to have a real catalyst like the two previous dips in the summer of 2024. In July, the German government’s BTC sell-off negatively impacted BTC prices and the entire crypto market. Just two weeks ago, a catastrophic stock market crash in the United States and Japan also had a negative impact on the crypto market.
However, most cryptocurrencies have since recovered their previous losses, and the German government completed its final Bitcoin liquidation last month. Therefore, with no clear reason for Bitcoin’s recent price drop, BTC may just be facing a temporary correction.
Is Bitcoin About to Recover?
Although BTC price has not been able to regain the $60,000 mark. However, there is still room for recovery as many organizations and asset managers have made many positive moves in recent days.
Recently, Morgan Stanley revealed its investments in Bitcoin ETFs, showing the financial giant’s strong support for Bitcoin and cryptocurrencies in general. Furthermore, the US state of Wisconsin has also announced its recent investments in Bitcoin ETFs, with the state’s investment board adding more than 447,000 shares to Bitcoin ETFs. And most recently, America’s largest mining company Marathon Digital Holdings announced its purchase of an additional $249 million in Bitcoin, bringing its total holdings to more than 25,000 BTC.
Despite the recent price drops, it is clear that Bitcoin's popularity continues to grow. Cryptocurrencies in general are a hot topic in economics and are often discussed in politics.
During his presidential campaign this year, Donald Trump said he supported Bitcoin and pledged to enact more suitable policies for cryptocurrencies to help the sector expand further in the US if he returns to the White House.
Because Bitcoin is the largest cryptocurrency by market capitalization, Bitcoin always has a great influence on the overall development of the Cryptocurrency field. Whether the cryptocurrency market is good or bad, people will look at Bitcoin to evaluate first.
As Bitcoin stabilizes, Altcoins benefit. Therefore, as Bitcoin has not performed well in the past few days, other assets like Ethereum or SOL have also dropped.
Currently, according to some analysts on X, from now until the end of the year, there is still a high possibility that BTC price will continue to adjust to the $50,000 - $45,000 area once again before gaining momentum to break the ATH of $73,000 early next year.
