Bitcoin experienced a slight drop in price to $64,500 during the European morning, after falling to $62,500 on Thursday. This price is close to the 50-day moving average, which is an important support line for traders. Alex Kuptsikevich, a senior market analyst at FxPro, mentioned that if the decline continues, key levels to watch are around $63K and $61K, where the 50 and 200-day moving averages are located. A failure to hold this support could potentially lead to a drop to $55K, which is concerning. Historically, August has been a mixed month for Bitcoin, with eight instances of losses and five instances of gains. The average decline was 15.4%, while the average rise was 26%.
ARK Invest, led by Cathie Wood, sold $14.8 million of COIN shares on Thursday, marking the largest single-day divestment since May 7. This sell-off occurred before Coinbase’s second-quarter earnings announcement. Despite beating revenue expectations, Coinbase reported lower profits than anticipated. Following the news, Coinbase’s shares initially dropped 5.2% to $212.64 during regular trading hours but stabilized in pre-market trading. ARK Invest sold a total of 69,069 COIN shares across two of its ETFs.
In other news, Hong Kong-based stock broker Futu Securities has introduced trading for Bitcoin and Ethereum, as well as offering shares in companies like Alibaba and Nvidia as incentives to new clients. Futu, known as Hong Kong’s largest tech broker, plans to expand its cryptocurrency offerings in the near future. The company is partnering with HashKey Exchange, one of the two licensed cryptocurrency exchanges in Hong Kong, to provide these services. Additionally, Futu is seeking a license to offer crypto services through its subsidiary, Panthertrade, and has interim approval from Hong Kong’s Securities and Futures Commission to do so.
Looking at the economic indicators, the U.S. Conference Board’s leading indicators are trending lower while coincident and lagging indicators are rising. This suggests potential economic weakness and a looming recession. Crypto analysts believe that a Federal Reserve rate cut during an economic downturn may not necessarily benefit Bitcoin.
Overall, the cryptocurrency market continues to be influenced by various factors, including price fluctuations, regulatory developments, and institutional investments. Stay informed and make sound decisions when navigating the volatile world of digital assets.