Bitcoin Price Hits $64,000 as Cryptocurrency Market Suffers a Harsh Reversal

Bitcoin triggered those losses as it plunged below $64,000 as spot ETF outflows coincided with Mt.Gox liquidations, which are expected to continue on Thursday.

Most cryptocurrency tokens crashed on Thursday morning in a sharp reversal as major tokens declined.

Bitcoin price dropped to $64,000.

Mog Coin, Lido, and ENS tokens led the sell-off.

After a stellar rally that saw Bitcoin hit a 2-month high of $68,435, the cryptocurrency and its key rival dropped sharply on Thursday morning. Most altcoins also crashed.

Bitcoin price dropped below the $64,000 level as outflows from spot ETF coincided with the Mt.Gox liquidations, which are expected to continue on Thursday. Kraken has already completed its distributions while Bitstamp is set to start its distributions on Thursday.

According to data by Lookonchain, spot Bitcoin ETFs saw outflows of 1,394 coins, which were valued at $92.6 million on Wednesday. The Bitwise Bitcoin ETF (BITB) led the outflows as it saw outflows of 1,088 coins. Other ETFs that saw outflows include the VanEck Bitcoin Trust (HODL) and Ark Bitcoin ETF (ARKB).

Bitcoin price crashed despite the low funding rates in most exchanges. Cryptionary, a highly followed analyst, noted in a recent note that Bitcoin is expected to bounce back after hitting $64,000.

From a technical perspective, this sell-off occurred as Bitcoin failed to break an important resistance at $68,435. This key level was created by the falling trendline that connected the highest swings since March and marked the upper boundary of the broadening wedge pattern. In most cases, this pattern leads to a bullish breakout.

Bitcoin price chart

Moreover, the crash took place as broader financial markets showed signs of fear. At the time of writing, the Nasdaq 100 index futures had crashed by over 854 points after mixed financial results by the likes of Tesla and Alphabet, the parent company of Google and YouTube. The Dow Jones futures had dropped by 505 points, whereas the S&P 500 futures had declined by 130 points.

Mog Coin, Lido, ENS tokens spearhead sell-off

Bitcoin’s sell-off triggered a massive sell-off among other altcoins. Mog Coin token led these losses, falling by 13.20%.

Next was Lido DAO (LDO), the largest DeFi player, whose token crashed by 10.3%. Brett, the largest meme coin on the Base Blockchain, dropped by 10.3%, while Ethereum Name Service (ENS), Fantom (FTM), Helium (HNT), and Starknet (STRK) fell by over 9%.

The next potential catalyst for Bitcoin and other altcoins is Friday’s Personal Consumption Expenditure (PCE) data, the Fed’s preferred inflation gauge.

Economists expect the report to show that inflation continued to fall in June, a move that will likely prompt a rate cut as early as the September meeting. As we saw in the first quarter of this year, cryptocurrencies and other risky assets perform well when the Federal Reserve pivots dovishly.

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