Bitcoin Falls Below $63K Amid Market Turbulence

Major movements in BTC and ETH by Genesis Trading linked wallets contribute to the crypto slump.

Bitcoin (BTC) faced a significant drop on Friday, falling below $63,000 amid a broader market downturn. The cryptocurrency experienced a 4% decline within ninety minutes during U.S. trading hours, following a weak July U.S. jobs report. This report typically drives risk assets like stocks and bitcoin higher, but the Nasdaq and S&P 500 dropped 3.1% and 2.7% respectively, influenced by Amazon and Nvidia’s disappointing earnings.

Adding to the bearish sentiment was the movement of nearly $2 billion worth of BTC and ETH from wallets associated with the bankrupt Genesis Trading. According to Arkham Intelligence, 16,600 BTC (around $1.1 billion) and 166,300 ETH (approximately $521 million) were likely moved for in-kind repayments to creditors. This action added pressure to the market already reeling from the sale of 50,000 BTC by the German government and distributions from the bankrupt exchange Mt. Gox.

Crypto markets in Japan also contributed to the gloomy outlook, with the Nikkei falling 5.8% following a minor monetary tightening by the Bank of Japan. The broader CoinDesk 20 Index also suffered, with major altcoins like ETH, SOL, UNI, and LINK seeing declines between 4%-5%.

Despite a brief rally above $65,000, Bitcoin succumbed to the risk-off mood, closing at $62,900. The overall market sentiment remains cautious as traders navigate these turbulent times.

photo source / Blockonome