Bitcoin and the broader cryptocurrency market experienced a notable decline this week, with Bitcoin dropping 4.2% to $64,257 and the total crypto market capitalization falling 3.9% to $2.34 trillion. The decline affected all top 10 coins, including Ether (ETH) and Binance Coin (BNB), each down 4%.
Despite speculation that Germany’s sale of 6,500 BTC ($425 million) from seized assets contributed to the downturn, analysts suggest that negative macroeconomic data played a more significant role.
U.S. macroeconomic indicators, including a drop in existing home sales and weaker-than-expected manufacturing and services PMI readings in the U.S., France, Germany, and the U.K., have fueled recession fears. Japan’s inflation also rose unexpectedly, adding to global economic concerns.
The “triple witching” event in the U.S., involving the expiry of $5.5 trillion in stock and index options and futures, further heightened market volatility. Amidst this backdrop, investors moved towards the U.S. Dollar, pushing the Dollar Index to a 50-day high of 105.85.
MicroStrategy’s purchase of 11,931 BTC for $786 million somewhat offset the German sale, but overall market sentiment remains cautious due to these economic uncertainties.
