Bitcoin, the leading cryptocurrency, hit a new two-month low as world markets experienced a risk-off sentiment.
After a 7.2% fall on Thursday, marking its largest one-day drop since November 2022, bitcoin reached $26,172 on Friday, its lowest point since June 16. By 0713 GMT, it had recovered slightly to $26,478, down 0.6% for the day.
Global markets have faced selling pressure, with Wall Street and Asian shares affected. Ether, the second-largest cryptocurrency, remained stable at $1,690.20, following a similar drop on Thursday.
Joseph Edwards, Enigma Securities’ Head of Research, attributed bitcoin’s decline to low volatility and waning retail investor interest. Bitcoin had maintained a level near $30,000 recently, buoyed by BlackRock’s application for a spot bitcoin exchange-traded fund (ETF) in the US.
Some investors speculate this move is tied to Grayscale’s lawsuit against the SEC, influencing market optimism.
