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Bitcoin price bounces to $67,000 after Thursday’s bloodbath

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Bitcoin Price
Bitcoin Price
  • Bitcoin price plunged to $60,000, its biggest single-day fall since the FTX crash.
  • Prices rose to above $66,000 as analysts forecast a potential dead cat bounce.
  • Market sentiment remains in extreme fear.

Bitcoin fell sharply on Friday, crashing to lows of $60,000, which ignited widespread selling before swiftly staging a dramatic recovery to around $67,100.

The volatile swing has sent the cryptocurrency market sentiment into extreme fear, with top altcoins, including Ethereum, XRP, and Solana, hitting critical support levels below $1,900, $1.40, and $80, respectively.

But after experiencing one of its most severe single-day plunges in history, can bulls sustain the flip?

Bitcoin sees biggest 24-hour dip since FTX crash

As noted, Bitcoin plummeted more than $10,000 in a matter of hours on Thursday, briefly dipping to lows near $60,000.

Bitcoin BTC Price Chart
Bitcoin price chart by TradingView

While Bitcoin has since recovered some ground and stabilised near $67,000 at the time of writing, the broader market remains under pressure following the cryptocurrency’s sharpest one-day decline since the collapse of FTX in November 2022.

Unlike previous sell-offs triggered by clear catalysts such as regulatory actions or exchange failures, the latest downturn appears to have been driven largely by technical factors.

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Analysts have pointed to a wave of liquidations and forced unwinding of highly leveraged positions, as traders who had positioned for continued gains were caught off guard by the sudden reversal in momentum.

Crypto analyst and investor Lark Davis shared the following on X:

Data from Coinglass showed that more than $2.6 billion worth of cryptocurrency positions were liquidated over the past 24 hours, with Bitcoin derivatives accounting for the largest share.

The sell-off spread across major altcoins. Ethereum fell below $1,800 for the first time in more than a year, while Solana slid to around $67, its lowest level since December 2023.

XRP also came under heavy pressure, touching lows near $1.13 and raising the risk of a move back below the $1 mark for the token linked to Ripple.

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Market participants noted that open interest in Bitcoin futures had climbed to record levels before the downturn, leaving heavily leveraged long positions exposed when prices reversed sharply.

Bitcoin price outlook: dead cat bounce or sustained rally?

As Bitcoin trades near $66,000, traders are weighing whether the rebound marks the start of a sustained recovery or represents a short-lived “dead cat bounce” that could give way to renewed losses.

Bearish sentiment remains dominant, with market confidence sliding to extreme lows.

The CoinMarketCap Fear and Greed Index is currently at 5 out of 100, signalling severe investor anxiety.

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Despite this, some analysts argue that supportive factors are still present.

The scale of the recent sell-off, driven in part by heavy long liquidations, has raised the possibility of a short squeeze.

If short sellers continue to cover positions, prices could extend their recovery.

For bulls, a sustained move above $70,000 and a retest of $73,000 would be key technical milestones.

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However, if momentum weakens amid ongoing macroeconomic and geopolitical pressures, Bitcoin could slip toward $60,000, undermining the rebound.

In that scenario, some market participants see $50,000 as the next potential downside target.

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Crypto World

Oil Rose 3% to Open the Week: Here’s What Moved the Market on Monday

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Oil prices jumped more than 3% on Monday, pushing Brent crude above $116 a barrel. West Texas Intermediate (WTI), the US benchmark, climbed to roughly $102 per barrel.

The latest rise comes as the US-Israel war on Iran entered its fifth week with no signs of abating.

Oil Extends Its War-Fueled Rally 

Several escalatory developments over the weekend fueled the surge. President Donald Trump told the Financial Times he could possibly seize Kharg Island, the terminal that handles roughly 90% of Iran’s crude exports.

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The US president struck a mixed tone on diplomacy with Iran, saying he was “pretty sure” of making a deal with Iran but conceding that talks could still collapse.

Meanwhile, Iran’s parliament speaker warned that Tehran would “set them on fire” when American forces arrived and promised consequences for US-allied nations in the region. 

The oil price surge is far from over, according to market analysts, who warn that the prolonged closure of the Strait of Hormuz could drive crude even higher.

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“A scenario in which the Strait remains closed for an additional month would be consistent with oil prices rising towards $150/bbl and constraints on industrial consumers of energy supply,” Bruce Kasman, global head of economics at JPMorgan, said.

According to Bloomberg, US officials and Wall Street analysts have also begun discussing the possibility of crude reaching $200 per barrel.

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Asian Stocks Tumble, Crypto Feels the Pressure

The energy shock rippled across Asia. Google Finance data showed that Japan’s Nikkei 225 fell over 4.5%, while South Korea’s KOSPI dropped more than 4.3% as import-dependent economies repriced risk.

The volatility has spread to crypto markets, with asset prices dipping early in the morning before rebounding. 

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“The market briefly crashed just now — ETH dropped below $1,940 and BTC fell below $65,000,” Lookonchain reported.

Oil above $100 per barrel continues to pressure risk assets by fueling inflation expectations and delaying anticipated Federal Reserve rate cuts.

The post Oil Rose 3% to Open the Week: Here’s What Moved the Market on Monday appeared first on BeInCrypto.

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Lido DAO Mulls $20M LDO Buyback to Boost Token Price

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Lido DAO Mulls $20M LDO Buyback to Boost Token Price

Lido’s decentralized autonomous organization is considering a one-off $20 million buyback of its governance token to address so-called price dislocation, which is at “historically depressed levels” relative to Ether, according to the DAO. 

The proposal, submitted Friday, seeks permission to swap 10,000 Lido Staked Ether (stETH) tokens, currently worth $20 million from the DAO’s treasury for Lido DAO (LDO), arguing that LDO is undervalued.

“This is not a routine fluctuation. It represents one of the most significant dislocations between LDO’s market price and its underlying protocol fundamentals in the token’s history.”

A token buyback of this size could boost the price of the token, which has fallen roughly 96% from its all-time high. In November, a Lido DAO member pitched an automated buyback mechanism for LDO to improve the token’s price. However, that proposal hasn’t been implemented.

LDO’s change in price relative to ETH since 2024. Source: Lido DAO

Lido DAO pointed out that LDO is trading at a steep discount to Ether (ETH) at a ratio of 0.00016, roughly 63% below its two-year median.

This is despite the protocol holding the top spot of the Ethereum liquid staking market, with a 23.2% share of staked Ether, according to Dune Analytics data. The protocol’s dominance has even been flagged as a centralization risk to the network in previous years.

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Share of Ethereum network validators. Source: Dune Analytics

Related: Ethereum builders propose ‘economic zone’ to tackle L2 fragmentation 

LDO is currently trading at $0.30, down 95.9% from its $7.30 high set in August 2021, according to CoinGecko data. LDO’s $255 million market cap makes it the 141st largest token by value at the time of writing.

“That dislocation is not justified by a proportional deterioration in protocol performance,” Lido DAO said. 

Lido DAO proposes buying stETH in batches

Lido DAO proposed buying up to 10,000 stETH in smaller batches of 1,000 to buy LDO. 

Lido DAO said it would use limit orders or adopt a dollar-cost averaging strategy to avoid market volatility. 

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