Bitcoin

Bitcoin (<a href="https://cointelegraph.com/bitcoin-price">BTC</a>) sought to reclaim $62,000 on Aug. 3 as markets inched higher after a fresh liquidation cascade.
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 <img src="https://s3.cointelegraph.com/uploads/2024-08/d743c547-dec8-4479-8ea5-0a6f9a1703ec.png" alt="BTC price slumps to $62K as Bitcoin bulls bet on M2 money supply">
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 BTC/USD 4-hour chart. Source: TradingView
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<h2 id="btc-price-tests-60-000-in-stocks-sell-off">BTC price tests $60,000 in stocks sell-off</h2>
Data from <a href="https://subscription.cointelegraph.com/?_gl=1*7499wx*_ga*MTQ0MzQ0NzI4Ny4xNzE2MzY1NTA0*_ga_53R24TEEB1*MTcxNjM2NTUwNC4xLjEuMTcxNjM2Njg2MC4wLjAuMA..">Cointelegraph Markets Pro</a> and <a href="https://www.tradingview.com/symbols/BTCUSD/?exchange=BINANCE" target="_blank" rel="noopener nofollow">TradingView</a> showed a 3% BTC price rebound taking shape after fresh multi-week lows of $60,435 on Bitstamp.
These accompanied a <a href="https://cointelegraph.com/news/bitcoin-traders-warn-tough-q3-nikkei-black-monday-1987">grim day for stocks worldwide</a>, with the Nikkei’s 6% drop setting the scene for more losses on Wall Street. United States employment data, which fell far short of expectations, exacerbated the sense of panic.
Bitcoin itself lost nearly $5,000, giving up several key support lines, including the <a href="https://cointelegraph.com/news/bitcoin-75-percent-short-term-holders-profit-67k">short-term holder cost basis</a>.
Liquidations mounted as a result, with data from monitoring resource <a href="https://www.coinglass.com/LiquidationData" target="_blank" rel="noopener nofollow">CoinGlass</a> putting the total crypto longs wipeout at $230 million for both Aug. 1 and Aug. 2.
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 <img src="https://s3.cointelegraph.com/uploads/2024-08/a14b9181-56cb-456a-8b24-2108d8b9ed6b.png" alt="BTC price slumps to $62K as Bitcoin bulls bet on M2 money supply">
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 Crypto liquidations (screenshot). Source: CoinGlass
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“The Yields are falling off a cliff in the U.S. markets as the job reports came in astonishingly bad,” Michaël van de Poppe, founder and CEO of trading firm MNTrading, wrote in a <a href="https://x.com/CryptoMichNL/status/1819432981787775045" target="_blank" rel="noopener nofollow">reaction</a> on X. 
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 “Slight panic across the board, as the markets are pricing in a substantial recession for the U.S.”
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 <img src="https://s3.cointelegraph.com/uploads/2024-08/6f22122f-e20a-4300-a69f-deced6722372.png" alt="BTC price slumps to $62K as Bitcoin bulls bet on M2 money supply">
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 US 2-year bond yields chart. Source:&nbsp;Michaël van de Poppe/X
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Van de Poppe argued that recent events had likely cemented the likelihood of the Federal Reserve cutting interest rates — a key bullish catalyst for crypto and risk assets — at its next meeting in September. 
“One thing is for certain: Rate cuts for September are confirmed,” he concluded.
Trading resource The Kobeissi Letter meanwhile summarized the macroeconomic landscape as full of mixed signals.
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 <img src="https://s3.cointelegraph.com/uploads/2024-08/1fbaaaa1-97c7-4997-9a4f-5e369d5ceb8f.png" alt="BTC price slumps to $62K as Bitcoin bulls bet on M2 money supply">
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 Source: The Kobeissi Letter
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“Yesterday, the discussion was whether a September rate cut was coming or not. Today, the discussion is whether the rate cut will be 25 basis points of 50 basis points,” part of its latest X coverage <a href="https://x.com/KobeissiLetter/status/1819449816591880495" target="_blank" rel="noopener nofollow">explained</a>.
Data from CME Group’s <a href="https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html" target="_blank" rel="noopener nofollow">FedWatch Tool</a> put market odds of a smaller 0.25% cut at 78% on the day.
<figure>
 <img src="https://s3.cointelegraph.com/uploads/2024-08/61feda8b-8f7a-4316-af8f-6c8401d45ad9.png" alt="BTC price slumps to $62K as Bitcoin bulls bet on M2 money supply">
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 Fed target rate probabilities. Source: CME Group
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<h2 id="global-liquidity-offers-bitcoin-bull-case">Global liquidity offers Bitcoin bull case</h2>
Bullish perspectives on Bitcoin remained in play despite the market shock.
Related: <a href="https://cointelegraph.com/news/bitcoin-whale-accumulation-10-year-high-analysts-btc-price-bottom">Bitcoin whale volume from exchanges hits 9-year high as analysts call BTC price bottom</a>
Jeff Ross, founder and managing director of hedge fund Vailshire Partners, suggested that rising global liquidity would buoy BTC price action going forward.
Ross uploaded a chart to X comparing the global M2 money supply to BTC/USD and the latter’s 50-week and 200-week simple moving averages (SMAs).
“A reverse head-and-shoulders forming for bitcoin (on the weekly chart) in the setting of increasing global M2 money supply? Would be uber bullish from a combined TA and liquidity perspective,” part of accompanying commentary <a href="https://x.com/VailshireCap/status/1819467274710892840" target="_blank" rel="noopener nofollow">read</a>.
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 <img src="https://s3.cointelegraph.com/uploads/2024-08/74d15df5-a95f-44d6-9c76-8ea4e166b4cc.png" alt="BTC price slumps to $62K as Bitcoin bulls bet on M2 money supply">
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 Global M2 money supply vs. BTC/USD chart. Source: Jeff Ross/X
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Even before the bulk of the comedown, <a href="https://cointelegraph.com/news/100m-btc-price-support-bitcoin-drop-61k">Cointelegraph reported</a> on increasing expectations among traders that Bitcoin would retest the bottom of its long-term trading range.
“Bitcoin Has now been trading in this range for more than 5 months,” popular trader Daan Crypto Trades <a href="https://x.com/DaanCrypto/status/1819463681173750259" target="_blank" rel="noopener nofollow">noted</a>.
<blockquote>
 “We've been seeing lower lows and lower highs as the range has been going on. Key levels remain $59K &amp; $74K for the lows and highs.”
</blockquote>
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 <img src="https://s3.cointelegraph.com/uploads/2024-08/de40c229-fe90-449a-b519-b9840bdbeff8.png" alt="BTC price slumps to $62K as Bitcoin bulls bet on M2 money supply">
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 BTC/USDT chart. Source: Daan Crypto Trades/X
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This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

BTC price slumps to $62K as Bitcoin bulls bet on M2 money supply

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