Bitcoin price plunges to 2-month lows, losing crucial $60K support

Bitcoin (BTC) experienced a significant drop in value on May 1, causing traders to lose half a billion dollars. The BTC/USD 1-day chart showed that BTC hit its lowest levels since February, reaching $57,082 on Bitstamp. This decline marked a loss of over 20% in the second quarter. The worsening sentiment in the crypto market was influenced by the hawkish fiscal policy moves made by United States Treasury Secretary Janet Yellen, as well as a legal judgment against crypto exchange Binance and its founder Changpeng Zhao. Yellen’s decision to pull liquidity from the market instead of increasing it had a negative impact on risk assets. Prior to this drop, there were already warnings about the potential decline in Bitcoin and altcoins, as the market had been stagnant since mid-March. Key support levels were fading, with $60,000 and short-term holder realized price no longer providing consolation for bulls. Charles Edwards, the founder of Capriole Investments, described two possible paths for BTC’s price trajectory, suggesting that the current decline could be a distribution phase. In the past 24 hours, $470 million worth of cryptocurrencies were liquidated, with Bitcoin accounting for $160 million and Ethereum for $120 million. Despite BTC/USD dipping below $60,000, the April monthly close was the worst month for Bitcoin since the 2022 bear market. It is important to note that this article does not provide investment advice and readers should conduct their own research before making any decisions.