CoinDesk 20 Index: 2,055.12 -1.52%
Bitcoin (BTC): $66,466.59 -1.27%
Ether (ETH): $2,582.91 -1.91%
S&P 500: 5,851.20 -0.05%
Gold: $2,751.91 +1.14%
Nikkei 225: 38,104.86 -0.8%

Bitcoin slid below $67,000, prompting a broad decline across the major cryptocurrencies. BTC dropped under $66,500 during the late European morning, around 1.3% lower in the last 24 hours. The broader digital asset market, as measured by the CoinDesk 20 Index, has fallen just over 1.5%. Bitcoin ETFs snapped a seven-day winning streak on Tuesday, losing nearly $80 million. DOGE led the losses among major tokens, falling 3.8%, while ETH and XRP both lost around 1.5%. DOGE had led gains in the previous seven days following a recent endorsement by Elon Musk.

Observers have pointed out that a slowing of stablecoin issuance is among the causes of the crypto market's progress being continually halted. Bitcoin nudged above the $69,000 mark but failed to sustain its upward movement subsequently. Stablecoin liquidity and growth are closely related to higher bitcoin and crypto prices. “Stablecoin volume has not increased since late September, setting up a potential pause in the growth of the broader cryptocurrency market, as stablecoins are often seen as liquidity for quick purchases of coins of interest. The previous growth momentum was from August to September, when the overall crypto market capitalization pushed off the bottom,” Alex Kuptsikevich, senior market analyst at FxPro, told CoinDesk in an email.

Bitcoin may cross previous highs regardless of which candidate becomes the U.S. president, some traders say. Donald Trump has been perceived as the more pro-crypto candidate and therefore it has been assumed a Republican victory would be the more beneficial outcome for BTC. However, some say the asset is poised to go higher either way. “Both Presidential candidates have adopted pro-crypto stances to appeal to voters, but it's tough to say if any of their promises will come to pass,” Jeff Mei, chief operating officer at crypto exchange BTSE, told CoinDesk. “However, It is clear that the market is responding positively to the upcoming change in administration and policies - whether it's Harris or Trump, traders and investors think any sort of change will be good.”

Bitcoin's latest failure to surpass $70,000 has analysts scrambling for an explanation, with some worrying the ongoing rise in the U.S. Treasury yields could lead to an extended drop.

The concerns, however, may be overblown, and the path of least resistance for bitcoin remains on the higher side, consistent with the upcoming coveted "golden cross" price pattern. This occurs when a 50-day simple moving average (SMA) moves above the 200-day SMA.

The pattern indicates that the short-term price momentum is outperforming the long-term, potentially evolving into a bull run. The moving average-based indicator is often criticized for being a lagging signal and trapping traders on the wrong side of the market.

While that's largely true, there have been instances of the Golden Cross presaging major bull runs.

A trader holding BTC for a year following the occurrence of the first two golden crosses and the one in May 2020 would have made triple-digit percentage returns. The cryptocurrency doubled in value to new lifetime highs over $73,000 following the golden cross dated Oct. 30, 2023.

- Omkar Godbole