Featured in Handelsblatt: Panic Selling Expected – Bitcoin Drops Below $80,000

The recent decline in Bitcoin's price below $80,000 has raised concerns about potential panic selling in the cryptocurrency market. This downturn is part of a broader market sell-off influenced by various economic factors.

Circuit Breakers on Trading Platforms

In response to increased market volatility, trading platforms are reminding their clients about the rules surrounding circuit breakers. These mechanisms are designed to prevent excessive market fluctuations. Specifically, if the S&P 500 index drops by 7% or 13%, trading is automatically halted for 15 minutes to help calm the market and provide investors time to respond. Should futures decline by more than 20%, trading is suspended for the remainder of the day.​

Market Analysts' Perspectives

Ebrahim Rahbari, a macro strategist at Absolute Strategy Research, indicates that there are "no significant signs that we will reach a bottom in the short term." He also notes the "remarkable lack of concern among key policymakers, including the Federal Reserve and the government, given the high market volatility."​

Treasury Secretary Scott Bessent recently downplayed investor concerns in a television interview, dismissing the notion that many Americans nearing retirement would need to work longer due to market conditions. He suggested that many individuals do not closely monitor daily stock market movements. However, it's important to recognize that many Americans are heavily invested in the stock market for their retirement savings and wealth building. Following the strong rally over the past two years, Americans' investments in the stock market are at unprecedented levels.

Original article in German

Article in full: Panikverkäufe erwartet – Bitcoin rutscht unter 80.000 Dollar