Bitcoin Plummets as US Stocks Fail to Bounce with Asia
Bitcoin plummeted to its lowest point in two weeks on Friday as US stocks struggled to follow Asia's rebound. The cryptocurrency fell by 3.5% to reach $62,369 on Bitstamp, a level last seen on July 14.
The lack of positive reaction from US stocks diverged from the major relief bounce seen in Asia, where South Korea's KOSPI index surged 17.9%, its largest single-day gain on record. Trading company QCP Capital noted that crypto market trading activity increased around the KOSPI gyrations, highlighting the growing relationship between crypto liquidity and regional equity positioning.
Rekt Capital, a trader and analyst, sees bear-market history repeating in August, mirroring the 2022 bear market. He forecast that price may try to maintain highs in early August but could rollover just like it did in 2022. Bitcoin's 50-month exponential moving average currently sits at $65,820, acting as resistance after two failed breakouts since mid-June.