Bitcoin Enters Bear Market Following 20% Plunge From All-Time High
Bitcoin has entered a bear market after experiencing a more than 20% drop from its recent record high,sparking concern among investors and signaling a potential shift in the cryptocurrency landscape. The world’s largest cryptocurrency fell as low as $60,780 on Friday, according to data from CoinDesk, erasing gains accumulated throughout the year and triggering a wave of liquidations.
This downturn arrives as the broader financial market grapples with uncertainty surrounding future interest rate cuts and economic data delays, factors that have recently impacted U.S. stock performance. The decline in Bitcoin’s value affects a wide range of stakeholders, from individual retail investors to institutional funds that have increasingly allocated capital to digital assets. A prolonged bear market could delay further institutional adoption and impact the overall growth trajectory of the cryptocurrency sector. Market watchers have dropped the probability of a rate cut next month to 45% while 54% see no move, according to the CME’s fedwatch Tool.
Recent market data reveals mixed performance across major U.S. stock indexes. On Friday,the Dow Jones Industrial Average closed down 309.74 points,or 0.65%, at 47147.48. The S&P 500 decreased by 3.38 points, or 0.05%, to 6734.11, while the Nasdaq Composite Index rose 30.23 points, or 0.13%, to 22900.588707.
Meanwhile, the Fidelity ethereum Fund (FETH) saw a decrease of 0.30, or 0.95%, closing at 31.30.
