Market Downturn Hits Bitcoin and Altcoins
Bitcoin's early attempt at a modest rally during U.S. trading hours on Friday was swiftly reversed, with prices plunging 4% within 90 minutes amid a broader equity market slump. Despite a weak July U.S. jobs report—which typically boosts risk assets—both stocks and cryptocurrencies faced downward pressure.
Key market highlights:
- Nasdaq: Down 3.1%
- S&P 500: Down 2.7%
- Volatility Index (VIX): Up 54%
- Bitcoin: Fell to $62,900, down nearly 2% in 24 hours
- CoinDesk 20 Index: Dropped almost 3%, with major altcoins (ETH, SOL, UNI, LINK) declining 4%–5%
Global Risk-Off Mood Intensifies
The selloff extended beyond U.S. markets, with Japan’s Nikkei tumbling 5.8% on Friday—following a 4% drop the previous day—after the Bank of Japan raised its benchmark rate slightly to 0.25%. This minor tightening spooked investors, exacerbating the risk-averse sentiment.
Supply Pressures from Genesis Trading Bankruptcy
Adding to the bearish momentum:
- 16,600 BTC ($1.1B)** and **166,300 ETH ($521M) were moved from Genesis Trading-linked wallets, likely for creditor repayments.
- One creditor confirmed receiving a distribution, citing it as a "reminder to minimize counterparty risk."
This follows other recent supply shocks:
- German government’s BTC sales (July 2024)
- Mt. Gox repayments
- U.S. government BTC sales
👉 How to navigate crypto volatility
FAQs
Why did Bitcoin drop below $63K?
The decline was driven by a global risk-off mood, equity market slumps, and concerns over increased crypto supply (e.g., Genesis repayments).
How are altcoins performing?
Major altcoins like ETH and SOL fell 4%–5%, underperforming Bitcoin.
What’s next for crypto markets?
Monitor macroeconomic signals (e.g., Fed policy) and supply dynamics (e.g., Mt. Gox distributions).