In a dramatic turn of events, Bitcoin’s rally back towards its record high of over $124,000 faced a significant setback, dipping below the crucial $121,000 mark during morning trading in the U.S. on Thursday. The cryptocurrency, which was geared up for a potential climb, experienced a swift reversal, cascading alongside the fluctuations seen in the gold and silver markets.
Gold had recently drawn attention for its price movements, but silver took center stage on Thursday, hitting an all-time high of $50 per ounce. This surge, however, prompted quick profit-taking among traders, resulting in a rapid 4% decline, bringing silver’s price to $48.55 at the time of reporting. Daniela Sabin Hathorn, a senior market analyst at Capital.com, observed that “near term, momentum looks choppy as technicals signal an increasingly overbought market.” She added that the medium-term outlook remains promising as long as macroeconomic factors and real yields remain favorable.
Gold too faced its share of fluctuations, retreating over 1% after attempting to breach the $4,100 per ounce resistance, currently trading at approximately $4,035. The combination of both precious metals cooling down contributed significantly to the general market volatility.
Compounding these challenges are the ongoing U.S. government shutdown and its implications for economic data releases. The disruption may be weighing on investor sentiment, affecting operations of businesses dependent on federal services, thereby casting a shadow over both traditional financial and digital asset markets.
While Bitcoin experienced this pullback, the overall cryptocurrency landscape revealed a more pronounced decline among altcoins. Ethereum dropped by 3.5%, landing around $4,300, and both BNB and DOGE fell in a similar range of 3% to 4%. This retreat allowed Bitcoin to solidify its position in the crypto market, as its market share surged to levels not seen in nearly eight weeks. The Bitcoin Dominance metric eclipsed 59.4%, indicating a shift where traders appear to be reallocating funds back into the leading cryptocurrency.
This shift was also reflected in the crypto derivatives market, where a staggering $600 million in leveraged trading positions were liquidated across various digital assets over the past 24 hours, according to data from CoinGlass. Such a high liquidation volume underscores the heightened levels of risk and volatility traders are currently navigating.
As Bitcoin’s price stabilizes, investors remain watchful of economic indicators and market sentiment in the weeks to come. With uncertainties clouding traditional markets and the cryptocurrency space, the quest for new price records for Bitcoin will have to wait as traders recalibrate and assess their next moves.
