Bitcoin Price Analysis: BTC Drops To Lowest Level Since August As Gold Market Cap Hits $30T

Bitcoin (BTC) slumped to its lowest level since August, dropping to a low of $103,516 before moving to its current level of $105,598. The flagship cryptocurrency is down over 2% during the ongoing session, with sellers in ￰0￱ to JPMorgan analysts, the downtrend is likely due to crypto-native investors rather than institutional ￰1￱ analysts believe traders may be deleveraging overleveraged ￰2￱ banking stress spilling over into crypto has also impacted investor ￰3￱ Market Cap Surges Gold’s market capitalization reached a staggering $30 trillion on Thursday as its value surged to a new all-time high of $4,357 per ounce. Gold’s market cap is now 14.5 times larger than Bitcoin’s (BTC) market cap, and 1.5 times larger than the combined market capitalization of the “Magnificent 7” tech companies (Nvidia, Microsoft, Apple, Alphabet, Amazon, Meta, and Tesla).

Unlike a company’s market cap, gold’s market capitalization is calculated by the value of all the gold that has ever been mined. However, it is impossible to know the exact ￰4￱ price of gold has soared this year, rising 64% since January 1 as traders flock to the asset amid geopolitical tensions, tariff uncertainty, and dollar ￰5￱ believe capital will eventually find its way to BTC once gold’s rally ￰6￱ analyst Sykodelic stated, “Gold added over $300 billion to its market cap today. It’s been adding an entire Bitcoin market cap in one week. I don’t understand how most cannot see that as soon as gold stalls, BTC is going to rip.” Crypto Selloff Driven By Native Investors JPMorgan analysts believe last week’s selloff was driven by crypto native investors rather than institutional players or ETF ￰7￱ managing director Nikolaos Panigirtzoglou and his team believe there is very little evidence to support the involvement of institutional players and ETFs in the market ￰8￱ analysts noted minimal outflows from Bitcoin and ￰9￱ Bitcoin Futures also saw minimal liquidations, indicating the downturn was due to deleveraging by momentum and quant ￰10￱ traders were caught off guard by a tweet by President ￰11￱ downturn triggered a cascade of liquidations, leading to one of the largest market crashes on ￰12￱ Plans Bitcoin Treasury News outlet operator Newsmax has announced plans to purchase up to $5 million in Bitcoin and TRUMP over the next year as part of its strategic crypto reserve ￰13￱ company stated that its board of directors approved the plan on ￰14￱ to Newsmax CEO Christopher Ruddy, the TRUMP coin’s success has been ￰15￱ acquired, it will make Newsmax the first NYSE-listed firm to purchase the ￰16￱ to Bitcoin, Ruddy called it the gold standard, stating, “We believe it would be an important company marker to add this asset to our company reserves.” The company also plans to make its first Bitcoin purchase soon.

However, it has not shared any details about how it plans to fund additional acquisitions. “Additional cryptocurrency acquisitions will be evaluated based on market conditions, operational requirements, and strategic objectives.” Bitcoin (BTC) Price Analysis Bitcoin (BTC) plunged to levels not seen since August, falling to a low of $103,516 during the ongoing ￰17￱ flagship cryptocurrency has struggled to regain momentum since Friday’s flash crash and extended its downtrend this week, despite a brief recovery over the ￰18￱ price is down over 2% during the ongoing session, trading around $106,041. Cryptocurrency markets faced further stress as regional bank stress spilled over into crypto, echoing a similar pattern that unfolded in ￰19￱ cryptocurrency market has reacted adversely to concerns over US regional banking stocks, which began falling in March ￰20￱ the time, BTC and other altcoins registered a sharp flash crash before markets ￰21￱ resource, the Kobeissi Letter, explained in a post on X, “Confused about what's happening with regional bank stocks?

Here's the real issue: In March 2023, regional bank stocks collapsed, the crisis was ‘contained,’ but nothing really ￰22￱ that took outsized risk were either ‘backstopped’ by the US government or acquired by ￰23￱ a result, this further incentivized taking on outsized risk, particularly as deposits over the $250,000 FDIC limit are now inherently ‘insured.’” The post went on to explain why markets were crashing, stating, “Today, shares of Zions Bancorp crashed -13% after it disclosed a $50 million charge-off for a loan underwritten by its subsidiary. And, Western Alliance Bank stock fell -12% after it said it’s dealing with a borrower that failed to provide collateral loans in the first position.” BTC traded in bullish territory last week, and began the previous week with a 1.41% increase to $122,318.

The price registered a marginal rise on Saturday before reaching an intraday high of $125,750 on ￰24￱ ultimately ended the weekend at $123,520, up 0.87%. Buyers retained control on Monday as the price rose 0.97% and settled at $124,720, but not before reaching an intraday high of $126.296. BTC lost momentum on Tuesday, falling almost 3% to $121,393. The price recovered on Wednesday, rising nearly 2% and settling at $123,343.

Selling pressure returned on Thursday as BTC fell 1.32% to a low of $119,713 before settling at $121,714.