Key Takeaways
- Bitcoin dropped 4% in an hour, falling below $57K.
- Institutional holders of Bitcoin ETFs rose from 1,479 to 1,924 in Q2 2024.
- Marathon Digital purchased over 4,000 bitcoins using $300 million in raised capital.
Bitcoin experienced a sharp drop Thursday afternoon, falling to $57,700, its lowest since the early August market panic.
The price fell 4% in just an hour, with the rest of the cryptocurrency market seeing even steeper declines.
Bitcoin falls despite stock market gains
This selloff came despite strong gains in U.S. equities, with the Nasdaq up 2.4% and the S&P 500 rising 1.6%.
In contrast to prior declines triggered by external events, such as Germany selling seized Bitcoin or the Bank of Japan’s rate hike, Thursday’s drop had no clear catalyst.
Puzzling
Bitcoin’s recent performance has puzzled bulls, who expected positive price movement from encouraging developments like the stock market rally.
Interest rates are expected to be cut by the U.S. Federal Reserve in September, a move historically beneficial for Bitcoin.
Additionally, institutional adoption of Bitcoin continues to grow.
In the second quarter of 2024, 1,924 institutional holders of spot Bitcoin ETFs were recorded, up from 1,479 in Q1. Companies like Marathon Digital and Semler Scientific are also increasing their Bitcoin holdings, with Marathon raising $300 million to purchase over 4,000 bitcoins at about $59,000 each.
