The broader US stock market followed the crypto market’s trend, with the tech-heavy Nasdaq erasing its earlier gains.
Bitcoin (BTC) lost the momentum it had gained over the past day and fell below $59,000 after bulls were unable to push prices above the key $61,000 level, which has historically acted as both support and resistance.
The leading cryptocurrency dropped to a low of $58,866, wiping out nearly all of the 3.2% gain it had made over the previous day in just one hour. At the time of writing, BTC was trading at $59,200—roughly back to where it began the brief rally earlier this week.
AI Tokens Hit Hardest
Meanwhile, the broader crypto market followed a similar pattern, with most assets experiencing larger losses than Bitcoin, which still remained up by 0.6% over the past 24 hours.
AI-focused cryptocurrencies were the hardest hit, following a significant 6.4% drop in Nvidia’s (NVDA) stock price after the company released its quarterly earnings. Tokens such as Render (RNDR), Artificial Superintelligence Alliance (FET), and Bittensor (TAO) all suffered losses between 7% and 10%.
Large-cap cryptocurrencies also mirrored Bitcoin’s movements, with Solana (SOL) and XRP seeing the steepest declines among the top 10. Ethereum (ETH) fell to $2,503 before bulls attempted to recover, while SOL dropped to a low of $138.5.
BNB similarly declined to a low of $530, and Toncoin (TON) remains under pressure due to recent challenges involving network disruptions and the arrest of Telegram founder and CEO Pavel Durov.
Uncertain Markets
The recent pullback suggests ongoing challenges for Bitcoin bulls in breaking through key resistance levels, raising concerns about the broader market’s strength. The market has shown a pattern of lower highs and lower lows since March, reflecting continued uncertainty and volatility.
Current price action indicates that the crypto market may be heading for further consolidation. Bitcoin’s quick rebound from its early August drop below $50,000 appears to be losing momentum, with the leading cryptocurrency remaining in a downtrend since reaching its all-time high of $73,000 in March.
The broader US stock market also mirrored the crypto market’s movements, with the tech-heavy Nasdaq reversing earlier gains to trade 0.3% lower shortly before the market closed. The index had been up more than 1.5% earlier in the day, underscoring similar investor uncertainty.
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