Bitcoin (BTC) has experienced a sharp decline, plunging nearly 9% and briefly dipping below the $25,000 mark on Binance, the world鈥檚 largest cryptocurrency exchange.
This sudden price drop comes as what was previously a relatively uneventful August has turned into a tumultuous period for the cryptocurrency market. Ether (ETH) also suffered a significant blow, plummeting by 11% to approximately $1,600.
Analysts attribute this downturn to several factors, including a surge in global interest rates, particularly in the U.S., where the 30-year Treasury bond reached its highest level since 2011. These rising rates have led to a decline in risk appetite across various assets, impacting both traditional markets and cryptocurrencies.
The recent hopes for a spot Bitcoin exchange-traded fund (ETF) and a favorable court decision for Grayscale鈥檚 Bitcoin Trust (GBTC) ETF conversion have provided some optimism. However, uncertainties regarding regulatory approval and market conditions still loom large.
As Bitcoin grapples with these challenges, it remains to be seen how the cryptocurrency will navigate the ongoing market turmoil and whether it can regain its footing in the coming weeks.
Bi-weekly newsletter featuring the latest Bitcoin-only news, analysis and price updates.
