Leading cryptocurrencies experienced a notable decline on Thursday, mirroring the downward trends seen in the broader stock market. This downturn occurred amid a contrasting surge in gold prices, which reached new heights.
Recent data shows that Bitcoin fell by 1.77%, settling at $109,036.62, while Ethereum declined by 1.66% to $3,940.21. Other cryptocurrencies followed suit, with XRP down 1.47% to $2.38, Solana plunging by 4.07% to $187.05, and Dogecoin down 3.19% to $0.1907. This substantial decline in cryptocurrency values deepened fears among investors, as indicated by the Crypto Fear & Greed Index, which suggested a sentiment of “Extreme Fear” prevailing in the market.
Bitcoin’s downturn represented its lowest price in over three months, with the cryptocurrency dropping to an intraday low of $107,500. Meanwhile, Ethereum briefly touched $3,829.65 before recovering later in the evening. The selling pressure intensified with a significant drop in trade volumes—22% for Bitcoin and 5% for Ethereum over a 24-hour period. Furthermore, liquidations reached a staggering $737 million, wiping out more than $530 million in bullish long positions, as reported by Coinglass. Interestingly, Bitcoin’s open interest increased by 2.85% to $73 billion, pointing to a trend where traders appear to be opening new short positions in anticipation of further price decreases.
Despite the overall downturn of major assets, some cryptocurrencies showed resilience. ChainOpera AI led the pack with a substantial increase of 21.5%, reaching a price of $19.63. Meanwhile, PAX Gold and Tether Gold saw gains of 2.98% and 2.97%, respectively, closing at $4,385.98 and $4,367.15. The global cryptocurrency market capitalization fell by 2.24% to $3.75 trillion during this period.
In tandem with cryptocurrency losses, U.S. stock markets also faced declines. The Dow Jones Industrial Average dropped by 301.07 points, equivalent to nearly 0.7%, finishing at 45,952.24. The S&P 500 lost 0.4%, closing at 46,253.31, while the Nasdaq Composite declined by 0.25% to end at 22,562.54. In contrast, yields on U.S. sovereign debt fell as the benchmark 10-year Treasury yield reached its lowest point since early April.
Gold’s stellar performance stood out amidst the chaos, soaring to new heights of $4,379 per troy ounce, reflecting a flight to safety among investors in uncertain times.
Analysts from the cryptocurrency payment company B2BINPAY pointed out that ongoing trade tensions between the U.S. and China were adding pressure to the cryptocurrency market. They emphasized that Bitcoin is currently consolidating within a broad range of $108,000 to $117,000. A daily closing price above $117,000 could indicate renewed strength and potentially uplift the overall market. They noted that Ethereum needs to maintain levels between $3,950 and $4,050, with aspirations to reclaim the $4,150 to $4,200 range to restore momentum.
Further analysis from blockchain analytics firm CryptoQuant revealed a significant shift in miner behavior, as 51,000 Bitcoin—valued at over $5.7 billion—were moved to exchanges like Binance in the past week. This trend reflects a transition from holding to selling or liquidating positions by miners, a move that historically puts downward pressure on Bitcoin prices.
