How far can Bitcoin fall after falling below $60,000 today?

The cryptocurrency space, along with most risk assets like stocks, plummeted on Friday amid reports of dire conditions in the US economy.

However, BTC and altcoins were hurt even over the weekend due to their ability to trade around the clock. BTC fell below $60,000 for the first time in weeks, prompting questions about how much further it could go.

Bitcoin’s Nosedive: When Will It End?

It was less than a week ago, on Monday, that the major cryptocurrency soared to $70,000 for the first time since early June. This rally came after Donald Trump’s pro-bitcoin speech during the 2024 BTC conference in Nashville.

However, the asset could not sustain the momentum and fell four thousand on the same day. The outlook worsened at the end of the week, with the asset plunging to $62,200 on Friday after the US released its July jobs report, which showed jobless rates rising to a three-year high.

Wall Street also crashed, but BTC continued to lose value over the weekend as it never stops trading. This culminated earlier today in a price drop below $60,000, which became a new 3-week low.

According to the popular AI chatbot – Perplexity, BTC’s fall could continue in the coming weeks. In fact, he predicted a pullback to the “mid-to-lower $50,000 range if the current bearish momentum persists.”

Additionally, Perplexity outlined another painful scenario where BTC could drop to $40,000-$50,000 “if it follows the patterns seen in previous bull markets, where major pullbacks occurred.”

What drives the price south?

Perplexity named some reasons why BTC went down last week and continues to go down. First, it focused on exits from Bitcoin-related financial investment vehicles, such as US-based ETFs. As reported yesterday, Friday was a particularly negative day with more than $230 million flowing out of the largest ETFs.

The AI ​​chatbot also mentioned the “lack of bullish momentum” since BTC broke below critical support levels such as $62,000, but has so far managed to stay above the psychological line of $60,000 despite the previous brief dip. However, a decisive break of this level could further exacerbate the fall.

“Market analysts have noted general nervousness among investors, especially in light of upcoming economic indicators that could influence Federal Reserve policies.” – concluded Perplexity.

SPECIAL OFFER (Sponsored) Binance Free $600 (Exclusive to CryptoPotato): Use this link to register a new account and receive an exclusive welcome offer of $600 to Binance (full details).

2024 LIMITED OFFER on BYDFi Exchange – Up to $2888 Welcome Reward, Use this link to register and open a 100 USDT-M position for free!