Bitcoin momentarily leaps below $60,000, Solana and Memecoins tumble

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Last Updated on 4 August 2024 by CryptoTips.eu

The big downside of that so-called ‘Bitcoin ETF’ effect, is that when things go badly on Wall Street, it has an immediate effect on the prices of all major digital currencies. The threat of a regional war in the Middle East (Israel against Lebanon and Iran) and a bad US jobs report (and therefore fears of a recession) are the main reasons why Bitcoin saw a nosedive this week.

Among the altcoins, we notice how Solana and the Memecoins in particular are taking a hard hit.

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Weekend

At the beginning of this year, the American stock market watchdog SEC finally allowed trading of a Bitcoin ETF. BlackRock, the largest investment fund in the world, ordered its charismatic CEO Larry Fink to make a few appearances at Fox Business and MSNBC in order to promote their latest product. American boomers followed suit and invested their savings.

Bitcoin therefore rose smoothly in the first quarter and touched a new all-time high of $74,000 in March.

The downside is that if Wall Street investors see a correction in tech stocks (as was officially noted on Friday, in other words 10% down since a local top), Bitcoin also takes a hit.

Support

All those who hoped for a ‘bounce’ this weekend (and a large number of people buying Bitcoin ‘on the cheap’) are out of luck at the moment.

Bitcoin even dipped below $60,000 last night, meaning that the $61,000 support line that FxPro analyst Alex Kuptsikevich indicated yesterday does not seem to be holding. It is also remarkable to see that altcoins are falling much faster.

Solana, which two weeks ago seemed ready to break the $200 ceiling during the optimism following the failed assassination attempt on Donald Trump (because investors think that a possible Trump presidency could be more beneficial for crypto), is now trading around $145 again, or about 25% lower.

Memecoins took an even bigger hit. Biggest losers of the week were Dogwifhat which fell 35%, Pepe slid 30% and both Bonk and Floki are already trading 25% lower than 7 days ago.

Be careful when trading everyone and don’t panic.

Jeroen Kok

Jeroen is one of the lead copywriters on Cryptotips.eu and discusses all recent events in the crypto market. This includes news updates, but also price analyzes and more. He developed his passion for cryptocurrency during the bull run in 2017. He has learned a lot since then. The combination of cryptocurrency and creative writing is perfect for Jeroen and an excellent way to share his knowledge with a wide audience. Find me on LinkedIn / [email protected]
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