Tech sector downturn adds to bitcoin’s struggles

25 Temmuz 2024

Today market analysis on behalf of Hani Abuagla Senior Market Analyst at XTB MENA

Bitcoin continued to lose value amid a broader market sell-off, led by concerns over Mt.Gox liquidations which could continue to weigh on sentiment and a correction from recent gains. Over the past 24 hours, the crypto market experienced significant liquidations, with long liquidations being significantly greater than short liquidations. This substantial liquidation volume has exerted considerable downward pressure on Bitcoin prices.

Adding to the negative backdrop, the recent downturn in the tech sector has impacted cryptocurrencies, as investors reduce their positions in riskier assets. Despite initial bullish sentiment for Ethereum ETFs, the second trading day saw substantial outflows, largely due to a USD 320 million outflow from Grayscale ETF and limited inflows in other Ethereum ETFs. BTC ETFs also recorded subdued inflows compared to the previous days with only USD 44 million in inflows.

 

Zaid Barem / YMM