Bitcoin Dips Below $50K Amid Global Economic Concerns
Bitcoin (BTC) extended its decline during Asian trading hours on Monday, plunging below $50,000 before stabilizing around $51,000. This marks the lowest level for BTC since mid-February. The plunge is driven by rising tensions in the Middle East and concerns about the global economy, which have significantly dented investor confidence.
Ether (ETH), the native token of the Ethereum blockchain, experienced its steepest single-day decline since May 2021, dropping nearly 25% and reaching as low as $2,060. This massive sell-off was largely attributed to rumors of Jump Trading liquidating its assets, with on-chain analysts identifying substantial ETH transfers to centralized exchanges.
The broader cryptocurrency market mirrored these declines. The CoinDesk 20 Index, which tracks some of the most liquid non-stablecoin tokens, fell by nearly 20%. The crypto fear and greed index, a metric that measures market sentiment, flashed “fear,” hitting its lowest point in a month. This index considers volatility, price trends, and social media activity to gauge whether the market is driven by fear or greed.
Investors’ anxiety was further reflected in significant outflows from cryptocurrency investment products. U.S. spot bitcoin ETFs saw $237.5 million in withdrawals on Friday, the highest since May 1, while ether ETFs experienced $54.3 million in outflows. According to CoinShares, the crypto market ended a four-week streak of net inflows with $528 million in outflows last week, with bitcoin losing $400 million and ether $146 million.
This panic selling in the cryptocurrency market has been part of a broader sell-off in global financial markets. Japan’s Nikkei 225 Index dropped 12.4%, the Stoxx Europe 600 Index fell by more than 3%, and micro futures on the S&P 500 Index lost 3.3%. The fears of a global recession, compounded by geopolitical tensions, have driven investors to hit the panic button, pulling funds from risky assets like cryptocurrencies.
About the Author
Sarah Wilson – Author and Content Writer at AiBlock Insider
