Strong macroeconomic data, fear of an artificial intelligence bubble and an ongoing court case could be factors in Bitcoin’s multiday correction.
After flirting with the $68,000 level on July 22, Bitcoin (BTC) faced a 6% correction in three days, erasing the gains from the prior week. From a bullish perspective, there is a positive indication as the $64,000 support held firmly.
Buyers stepped in to defend Bitcoin’s market capitalization at $1.25 trillion, slightly above the United Kingdom's British pound, valued at $1.15 trillion. Still, Bitcoin bears have macroeconomic data on their side, at least in the short term.
Bitcoin’s price decline coincides with the Nasdaq index futures movement, which experienced a 4.9% correction between July 23 and July 24. Traders now question if the drivers behind the stock market decline, especially the tech names, justify the correlation with the cryptocurrency market. If investors’ concerns are mostly derived from economic recession fears, Bitcoin’s long-term appeal could present a buying opportunity.
