Bitcoin Price Decline

Bitcoin (BTC) has dropped to its lowest level in nearly three months following a significant decline in the last 24 hours.

Altcoin Performance

The largest altcoin, Ethereum (ETH), experienced a sharp decline of 11.8%, reducing its price to $2,375. Other altcoins faced similar downturns:
– Solana (SOL): -15.6%
– XRP: -13.7%
– BNB: -6%
– AVAX: -13%

Death Cross Alert for Ethereum

Market analyst Omkar Godbole warned that Ethereum is nearing a ‘death cross,’ a phenomenon where the 50-day simple moving average (SMA) crosses below the 200-day SMA, indicating potential further price declines.

Understanding Death Cross

A death cross occurs when a shorter-term moving average drops below a longer-term one, signaling substantial weakness. This pattern suggests that prices may stay below the long-term average temporarily, potentially leading to additional declines. Investors are often cautioned by this indicator as it may precede significant price drops.

Causes of the Decline

Several factors contribute to the ongoing decline:
– Nasdaq futures indicate continued losses in tech stocks.
– A strengthening Japanese yen raises risk aversion, mirroring patterns seen in August. Omkar Godbole noted that discussions about potential interest rate hikes by the Bank of Japan echoed trends from the previous year when the increased rates led to a significant drop in Bitcoin’s value from $65,000 to $50,000.
– Additionally, recent remarks by US President Donald Trump regarding trade tariffs potentially heightened market uncertainty, accelerating the loss of value in Bitcoin and other altcoins.

*This is not investment advice.