New York Stock Market Rises, Cryptocurrencies Fall…Bitcoin Collapses Below $63,000

▲ Bitcoin (BTC), Nasdaq (NASDAQ)/ChatGPT generated image ©

While the Nasdaq 100 rose, the cryptocurrency market conversely plummeted, showing a 'decoupling' trend once again. Bitcoin (BTC) has fallen below $63,000, dragging down the entire market.

According to investment media FXStreet on August 3 (local time), the total cryptocurrency market capitalization decreased by 1% in the last 24 hours, returning to mid-July levels. The upward momentum seen throughout last week failed to establish itself, and a negative correlation with the Nasdaq 100 reappeared, where stocks rose while cryptocurrencies fell.

Bitcoin attempted to reclaim its 50-day moving average on Sunday but only managed a brief rebound, retreating to last week's lows. This indicates that buyers are struggling to convince the market that the bear market, which began in September last year, has reversed. BTC recorded its largest monthly decline in four years in June, then rebounded by 7.3% in July, closing at $62,900.

Seasonally, August is also considered the most unfavorable month for Bitcoin. In the past 15 years, BTC has closed August with a gain only 5 times, falling in the other 10 instances. The last four years have also all ended with a decline. The average return in rising years was 14%, but the average decline in falling years reached 13.8%.

Corporate and policy-related news also heightened investor caution. Strategy recorded a net loss of $8.2 billion in Q2, turning from a net profit of $10 billion in the same period last year to a deficit. The main reason was unrealized book losses due to the decrease in the value of held Bitcoin. CEO Phong Le stated that if deemed economically viable, Bitcoin sales would continue, but funds raised through stock issuance would not be automatically reinvested entirely into BTC. The primary goal is to restore the price of STRC preferred shares to $99-$100.

U.S. Treasury Secretary Scott Bessent urged the Senate to vote on the U.S. cryptocurrency market structure bill, the Clarity Act, without delay. Meanwhile, Quantum Solutions, Japan's largest holder of listed Ethereum (ETH), decided to sell 1,000 ETH worth $1.9 million to invest in its artificial intelligence (AI) data center business. Tether's excess reserves halved during the quarter to $4.11 billion, but USDT in circulation increased by $446 million to $184.6 billion. The number of users also increased by over 30 million, surpassing 650 million.

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