Challenges Bitcoin Faces in Maintaining a $60,000 Value

The value of bitcoin, the leading cryptocurrency globally, briefly fell below $59,000 on Friday due to uncertainties in the global market, decreased demand, and outflows from exchange-traded funds. Data from CryptoQuant indicated that bitcoin’s price is currently close to a bottom, facing continuous downward pressure. Over the previous week, the price of bitcoin plummeted by 6% and experienced a 9% decrease from earlier this month.

As of the latest update, bitcoin is trading around $59,000, struggling throughout the month to sustain a price above $60,000. Other cryptocurrencies like Toncoin and Notcoin, linked to Telegram, also faced challenges on Friday, with both witnessing drops of over 20% this week. The arrest of Telegram CEO Pavel Durov in France led TON to lose a substantial $3 billion last Sunday, marking a decline of 25%. The blockchain network encountered several outages this week, impacting its price performance.

Ether, the second-largest cryptocurrency globally, encountered obstacles in the past week. Ether is currently valued at approximately $2,500, significantly lower than its starting point earlier this month at around $3,146, representing a decline of 20.53% from its value in early August. Solana’s price also decreased to about $136, according to CoinMarketCap, reflecting a drop of more than 19.52% from its August beginning price of $169.

Additionally, Dogecoin, a popular meme coin, recently suffered losses of nearly 18%. The subdued crypto market on Friday resulted in increased liquidations as traders looked to exit investments with diminishing values. Crypto investment firm QCP Capital expressed its belief that any downturn in equities and cryptocurrencies would be brief, anticipating a rate-cutting cycle led by Powell and the Fed, which would boost liquidity and eventually drive up risk assets. The firm stated, “We are finally on the cusp of a rate-cutting cycle.”