Despite the stock market rebounding a bit from its recent crash, Bitcoin and other cryptocurrencies have tumbled in price today. The leading cryptocurrency by market cap was down 3% today, with investors fearing a further drop is coming. Thursday afternoon saw BTC fall below $58,000 and other cryptocurrencies take a slight dip. But what caused the downturn?
Today’s selloff doesn’t appear to have a real catalyst like the previous two summer 2024 dips. In July, a German government bitcoin selloff negatively impacted the asset’s price. Just two weeks ago, a stock market crash in the US also impacted cryptocurrencies. However, stocks are back up, and Germany finished the last of its Bitcoin selloff last month. Therefore, with there being no understood reason for Bitcoin’s dip, BTC may be just facing a temporary dip and correction.
Is Bitcoin Set to Rebound?
The past week has seen the asset fall just over 5%, and the last 30 days reveal a further dip of nearly 10%. There is room to rebound though, as many holders and asset managers have made moves today.
Yesterday, Morgan Stanley revealed new Bitcoin ETF holdings, showing the firm’s strong support for the digital asset. Furthermore, the state of Wisconsin also continued its recent investments in the ETF, with its investment board adding more than 447,000 shares to its Spot Bitcoin ETF holdings. Just today, Marathon Digital Holdings bought another $249 million worth of Bitcoin. The miner’s reserves have now reached 25,000 BTC.
Also Read: Marathon Digital Buys Another $249M in Bitcoin
Despite recent dips in price, it is clear that the popularity of Bitcoin continues to grow. Cryptocurrency as a whole is a hot topic in economics and on a government level. Since BTC is the largest asset by market cap, it also drives the boat of whether or not other crypto coins perform well. When BTC succeeds, all of the crypto succeeds. Therefore, since Bitcoin hasn’t performed too well today, other assets like Ethereum and SOL are also down. Fortunately, it is likely that all of those assets will rebound to close out the week, and return to the green next week.
