Bitcoin Price Drops to $55.5K Amid $1 Trillion Stock Market Sell-Off and Weak U.S. Data

Bitcoin experienced a sharp decline on Wednesday, dropping from over $65K to $55.5K amid a massive $1 trillion stock market sell-off.

The cryptocurrency’s fall followed a 3.5% plunge in the Nasdaq 100, with major tech stocks like Apple and Nvidia losing over $550 billion in value.

This market volatility, coupled with weak U.S. economic data, continues to pressure Bitcoin prices.day.

Bitcoin Falls Amid $1 Trillion Stock Market Decline

Bitcoin dropped sharply on Wednesday, falling from over $65K to as low as $55.5K during Asian trading hours, before slightly recovering.

The drop followed a $1 trillion wipeout in global stock markets, driven by a 3.5% plunge in the Nasdaq 100. Major stocks like Apple, Nvidia, and Amazon lost over $550 billion in market value, adding to market pressure.

• Japan’s Nikkei dropped more than 4%, adding to global volatility.
• Weak U.S. manufacturing data heightened fears of an economic slowdown.

The global market sell-off, combined with concerns about slowing U.S. economic growth, weighed heavily on Bitcoin, further driving its decline.

Terraform Wallet Moves $62M in Bitcoin Amid Do Kwon’s Legal Troubles

On September 2, a wallet linked to Terraform Labs and co-founder Do Kwon transferred $62 million in Bitcoin (over 1,075 BTC). This movement raises concerns due to Kwon’s ongoing legal battles.

Arrested in Montenegro in 2023, Kwon faces extradition requests from the U.S. and South Korea, following accusations of fraud after Terra’s collapse in 2022.

• The $62M transfer coincides with Terraform’s $4.5 billion SEC settlement.
• Ongoing U.S. bankruptcy proceedings add further complications.
• The transaction may be influencing Bitcoin’s recent price decline.

As Terraform faces growing legal pressure, the timing of this large Bitcoin transfer has drawn significant attention from market observers.

Trump’s Crypto Project Linked to $2 Million DeFi Hack Raises Security Concerns

Recently, former President Trump and his sons launched World Liberty FinancialCoin (WLFI), a governance-focused cryptocurrency. However, concerns have surfaced due to similarities with Dough Finance, a DeFi app that was hacked earlier this year, resulting in a $2 million loss.

• WLFI’s white paper reveals parallels to the breached platform.
• Questions arise about the security of the new project.
• Trump’s involvement in crypto marks a significant shift as he previously criticized the industry.

The timing of the WLFI launch, alongside Bitcoin’s recent decline, has raised eyebrows. Some speculate that traders are wary due to the high-profile nature of Trump’s involvement and the project’s connection to a previously hacked platform.

Investors are responding cautiously, emphasizing the risks and uncertainties surrounding crypto valuations.

Bitcoin Faces Bearish Momentum Below Key $57,445 Level

Bitcoin (BTC/USD) is trading at $56,590, down 1.57%, signaling a bearish trend. The 4-hour chart shows Bitcoin is stuck in a downward channel, with key resistance around the $57,445 pivot point.

If Bitcoin breaks below immediate support at $55,573, prices could fall further to $54,000 or even $52,138.

The Relative Strength Index (RSI) is 33, suggesting Bitcoin is oversold, but no major reversal is in sight yet.

The 50-day Exponential Moving Average (EMA) at $59,068 is adding resistance, keeping the bearish outlook unless Bitcoin moves above $57,445.

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The post Bitcoin Price Drops to $55.5K Amid $1 Trillion Stock Market Sell-Off and Weak U.S. Data appeared first on Cryptonews.