Aug 2 2024: Bitcoin prices fell slightly on Friday and were on track for a significant weekly loss as concerns over slowing economic growth led to a broader market rout, negatively impacting crypto prices.
Fears of a potential mass sale by the U.S. government and uncertainty about the U.S. presidential race’s impact on crypto regulation kept traders wary.
As of 02:02 ET (06:02 GMT), Bitcoin steadied at $64,255, after earlier hitting a low of $63,697.1.
Bitcoin Faces Weekly Losses Amid Negative Crypto Sentiment
The world’s largest cryptocurrency was set to lose over 5% this week, with sentiment towards crypto markets deteriorating due to increasing uncertainties.
Reports that the U.S. government had mobilized approximately $2 billion worth of confiscated tokens for a potential sale put downward pressure on Bitcoin’s price.
A broader risk-off sentiment further deterred traders from crypto markets, as weak economic data from the U.S. and China heightened concerns over slowing growth, pushing traders towards safe havens such as gold, the dollar, and the Japanese yen.
Global stock markets experienced a deep decline on Thursday and Friday amid increased risk aversion.
Additionally, uncertainty over the U.S. presidential election added to the market’s apprehension. A Bloomberg poll showed Democratic frontrunner Kamala Harris now tied with Republican nominee Donald Trump, reducing the likelihood of a Trump presidency. Last week, crypto markets had rallied on Trump’s comments that he would support the industry if reelected. Harris, however, has not made explicit statements about crypto but is expected to continue the Biden administration’s crackdown on the sector due to concerns over fraud.
Altcoins Follow Bitcoin’s Downtrend
In the broader crypto market, major altcoins mirrored Bitcoin’s weakness, with few positive signals. Altcoins were also set for weekly losses.
The second-largest token, Ether, fell 1.6% to $3,134.41, and was on track for a 3.5% weekly loss, despite the recent launch of spot exchange-traded Ether funds in U.S. markets.
XRP, ADA, and SOL fell between 2% and 7%, while meme tokens DOGE and SHIB dropped over 2% each.