Bitcoin (BTC) has dropped to $68,000, reflecting a broader decline in cryptocurrencies as global equity markets struggle under the weight of a stronger U.S. dollar and rising Treasury yields. This downturn is compounded by increased BTC mining costs, which may lead to heightened selling pressure from miners. The geopolitical tensions surrounding the Strait of Hormuz and escalating oil prices, currently near $110 per barrel, are also diverting investor focus away from crypto assets.
The correlation between Bitcoin and the S&P 500 has reached multi-year lows, indicating that BTC’s decline began independently of the recent stock market correction. Should BTC fail to regain upward momentum, any rebounds in equities may be viewed as opportunities for profit-taking rather than signs of a trend reversal.
Market professionals should monitor Bitcoin’s price action closely; a potential decline towards $45,000 could signal a critical accumulation level, while Ethereum may retest its 2022 lows around $1,200 if bearish trends persist.
Source: xtb.com