Crypto Price Update August 3: Bitcoin Plummets 10%—Analysts Foresee Drop to $57K

Bitcoin price had gone down by 4.5% due to the top three US indices plummeting by 1.5-2.5% on Friday — currently trading at $61,873 with a market cap of $1.21 trillion. This downtick represents a reticent sentiment among investors, who prefer to hold off and observe instead of buying the dip.

In the past four days, Bitcoin has witnessed a 10% decline on the weekly chart. And expert crypto trader Stockmoney Lizards forecasts that Bitcoin could fall even further, given the current market conditions.

Bitcoin Could Dip Below $57K

#Bitcoin

Update: We are now at the level of support and our first short-term target. A daily / weekly close above 61.8k would likely initiate a short term reversal.

If not, short-term direction is south with a target of 56.8k.

Note: this is all short-term… We believe in a… pic.twitter.com/5mQ8YDrA6h

— Stockmoney Lizards (@StockmoneyL) August 3, 2024

Stockmoney Lizards asserts that a daily or weekly close above $61k could provoke a short-term reversal, indicating the possibility of an upward movement in Bitcoin’s price.

Conversely, If Bitcoin doesn’t close above $61.8k, it might continue to drop, potentially reaching $56.8k. This prediction highlights short-term market volatility, with traders closely monitoring these crucial price levels.

In these erratic fluctuations, Stockmoney Lizards maintains a positive optimism for Bitcoin’s long-term prospects. They predict a substantial price increase towards the end of the year, potentially starting in the final quarter. While short-term market fluctuations are expected to continue, Stockmoney Lizards believes that broader market conditions will likely drive Bitcoin’s value significantly higher in the coming months.

Bitcoin ETF Outflows Rises

On Friday, Farside Investors reported that spot Bitcoin ETF outflows hit $237 million. Fidelity’s FBTC experienced the largest outflows at $104 million, and Ark Invest’s ARKB came second with $87.7 million. In contrast, only BlackRock’s IBIT and Grayscale’s BTC saw net inflows.

Source: Farside Investors

Despite Morgan Stanley announcing that only qualified clients could invest in Bitcoin ETFs, these notable outflows still happened. It appears that the global economic factors seem to be negatively impacting the market.

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