Bitcoin price: Bitcoin and other major cryptocurrencies dropped on Thursday as traders looked ahead to fresh economic data following a flash crash earlier in the week, as per a report.
Bitcoin (BTCUSD) was down 2% over the past 24 hours, trading at $111,513, as per CoinDesk data. That leaves the world’s largest digital asset down 4.7% over the past seven days and nearly 10% below its August record of just above $123,000, as per a Barron’s report.
Ether (ETHUSD), the second-largest cryptocurrency, fell 4.2%, while Ripple’s XRP (XRPUSD) dropped 2.5%. Solana (SOLUSD) slid 5.8%, as per a Barron’s report.
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The pressure wasn’t limited to digital assets. On Wall Street, the S&P 500 fell 0.4% and the Nasdaq Composite slipped 0.5%, as per a Barron’s report.
Investors are now waiting for Friday’s personal consumption expenditure (PCE) report, the Federal Reserve’s preferred inflation gauge, as per the report. The data could influence the Fed’s next move on interest rates, which matter for risk assets like crypto, as per a Barron’s report. When rates fall, traditional safe-haven investments such as bonds or certain equities offer lower yields, often pushing investors toward higher-risk options like digital assets, as per a Barron’s report.
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The latest selloff follows Monday’s sharp downturn, the biggest deleveraging event for crypto so far this year, as per a Barron’s report. Traders unwound bullish bets that had piled up after the Fed cut interest rates by a quarter point last week, as per the report.
However, Maja Vujinovic, CEO of Digital Assets at FG Nexus, pointed out that big liquidations reflect excess leverage, not failing fundamentals, according to the Barron’s report. Vujinovic said, “Overheated funding post-Fed left traders exposed; once Bitcoin rolled over, forced unwinds hit ETH and [altcoins] hard,” as quoted in the report. Though, as the crypto trade has remained cautious this week, Vujinovic argued that history shows these “leverage washes” often mark a healthier base, as reported by Barron’s.
Why is crypto down today?
Because traders are cautious ahead of Friday’s US inflation data (PCE report) after a flash crash earlier this week.
How much has Bitcoin dropped this week?
It’s down about 4.7% over the past seven days.
