Bitcoin drops to $62K on Friday. The asset fell to its lowest levels in over two weeks.
US stocks saw pressure into the monthly close. This diverged from a relief bounce in Asia.
Why Bitcoin drops to $62K
Data from TradingView showed BTC/USD falling 3.5%. It reached $62,369 on Bitstamp. This level was last seen on July 14.
US stocks turned red at the open. They then treaded water. Meanwhile, Asia saw a major relief bounce. South Korea’s KOSPI ended up 17.9%. This was its largest single-day gain on record.
“Semiconductor shares led both the sell-off and the recovery,” QCP Capital wrote. The index has high exposure to AI and memory-chip cycles. Crypto trading activity increased around the KOSPI gyrations. This highlighted the growing relationship between crypto and regional equity positioning.
Both Japan and Korea engaged in currency interventions. Japan’s central bank kept rates at 1.0%. This followed the Fed’s decision to stand pat on Wednesday.
Bitcoin traders see bear-market history repeating
BTC/USD approached the end of the monthly candle. It was up 8.5% for July. This marked its strongest July since 2022.
Traders had anticipated a relief bounce until August. This mirrors the 2022 bear market. The next long-term bottom could follow.
Analyst Rekt Capital shared his view. “It’s likely price will try to maintain these highs in early August,” he wrote. “But history suggests price could rollover just like it did in 2022.”
Bitcoin’s 50-month exponential moving average is at $65,820. It continues to act as resistance. Two failed breakouts have occurred since mid-June.
