Bitcoin and crypto prices have fallen sharply, with the bitcoin price plunging to $60,000 as traders brace for a Federal Reserve shock.
Sign up now for —A free crypto newsletter that will get you ahead of the market
The bitcoin price has broken with the high-growth technology stocks it was previously trading with, falling even as the likes of Elon Musk’s SpaceX climb ahead of what could be a massive game-changer.
Now, as analysts with JPMorgan flag what could be the next bitcoin price catalyst, bitcoin and crypto market watchers are warning a break below $60,000 could trigger a “cascade.”
Sign up now for the free —A daily five-minute newsletter for traders, investors and the crypto-curious that will get you up to date and keep you ahead of the bitcoin price and crypto market swings
“The asymmetry is to the downside,” analysts with the Bitfinex bitcoin and crypto exchange said in emailed comments, pointing to Friday’s $10.6 billion quarterly options expiry as acting as a bitcoin price magnet.
“A sustained move below the $60,000 put wall pushes deeper into negative gamma and risks a cascade toward $54,000 to $56,000 near the realised rrice. An upside squeeze into $66,000 to $68,000 is capped by offers and the flip above.”
Meanwhile, U.S. president Donald Trump has refused to sign Congress’ bipartisan housing bill, which includes a four-year ban on a central bank digital currency (CBDC), saying he won’t sign it until the voting identification Save America Act is passed.
“Today’s housing news conference and signing is hereby cancelled until such time as we pass the desperately needed Save America Act, which I consider to be a national emergency,” Trump posted to his Truth Social.
Sign up now for —A free crypto newsletter that will get you ahead of the market
Trump’s refusal to sign the bill could mean he’s also unlikely to sign the bipartisan crypto market structure bill known as the Clarity Act, which many have pinned their hopes of a bitcoin price and crypto market recovery on.
"With the July 4 deadline looming for the Clarity Act, that question is no longer hypothetical. It’s becoming a real strategic consideration," Javier Martinez, chief executive of crypto platform sFox said in emailed comments.
“At some point, waiting becomes a liability. And if clarity doesn’t come soon, institutions won’t just sit on the sidelines. They’ll go where the rules are. The question isn’t whether capital will move. It’s whether the U.S. will keep it."