Keep an eye on the Bitcoin chart as it surpasses $60,000. It surpassed this level and touched the June 5 low at $59,125.
This is a new low since September 2024.
At current levels, the entire Trump 2.0 rally is already wiped out despite a host of crypto-friendly US policies. This is a fundamentally bad sign and a problem for the bulls. There are few reasonable levers left to deviate from a Bitcoin strategic reserve and it does not appear to be something that Congress is interested in at all.
Today, crypto is caught in a sort of deleveraging sell-off in the markets. Bitcoin is down 5%, but silver is down 7.4% and gold is down 3%. WTI crude oil is down 4%, top-performing stocks are slumping and the U.S. dollar is up across the board. The winner today is the bond market with yields down 6-9% due to a flight to safety.
Bitcoin last fell $3,019 to $59,369 and about $200 from June’s intraday low after briefly touching below.
Bitcoin daily
I think Bitcoin’s biggest problem, as I wrote earlier this month, is that it has lost its cool. Young men who dominate risk-taking in the markets are increasingly turning to AI-related trading, meme stocks and options trading. Crypto has benefited in part, but for 20-year-olds it seems almost institutional.
Additionally, use cases remain limited and the same talking heads who repeat “$1 million bitcoin” have lost credibility. The overall bandwidth for crypto is getting smaller and smaller outside of stablecoins, which are proving to be incredible businesses, but practically investments.
Technically, a breakout here would clearly be targeting $50,000 and it could happen quickly if we get a bad earnings reaction from Micron later today and a wave of “risk aversion” hits the Nasdaq.
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