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  • Writer's pictureKarl Oppenheimer

Bitcoin Hits Fresh Two-Month Low Amid Global Market Sell-Off

Bitcoin, the leading cryptocurrency, experienced a fresh two-month low on Friday as it broke out of its recent narrow trading range, influenced by a surge of risk-averse sentiment sweeping through global markets.

The preceding Thursday saw a notable decline of 7.2% in bitcoin's value, marking its most significant one-day drop since November 2022, coinciding with the collapse of prominent exchange FTX.

During Asian trading hours on Friday, bitcoin further slipped to its lowest point in two months, reaching $26,172, the lowest since June 16. As of 0835 GMT, a partial recovery had been made, with the value rebounding to $26,441, reflecting a 0.8% decline for the day.

World markets have been grappling with widespread selling, resulting in Wall Street's primary indices closing in the negative territory on Thursday, and Asian shares appearing set for a third consecutive week of losses. These concerns have been fueled by apprehensions about China's economy and the persistent anticipation of prolonged higher U.S. interest rates due to a resilient economic environment.

Ether, the second-largest cryptocurrency, maintained stability at $1,685.20, following a substantial drop on the previous Thursday. Bitcoin had been hovering close to the $30,000 mark in recent months, indicating a gradual recovery in 2023 after experiencing a sharp decline in 2022 due to the collapse of various crypto companies, resulting in substantial investor losses.

In June, the cryptocurrency markets received a boost when BlackRock submitted an application to launch a spot bitcoin exchange-traded fund (ETF) in the United States. Some investors interpreted this move as a potential signal of the U.S. Securities and Exchange Commission's approval of spot bitcoin ETF applications submitted by different asset managers, including Grayscale.

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