Flat at $64.5K, Set for Weekly Loss Amid Broader Market Rout

Bitcoin experienced a slight decline on Friday and is on track for a significant weekly loss, impacted by a downturn in wider financial markets stemming from concerns about slowing economic growth, which has also affected cryptocurrency prices.

Traders remain cautious, influenced by fears of a large sale of cryptocurrencies by the U.S. government, alongside uncertainty regarding how the upcoming U.S. presidential race might influence cryptocurrency regulation.

At 08:33 ET, Bitcoin traded at $64,649.00, having previously dipped to $63,697.10.

### Bitcoin Faces Weekly Losses Amidst Deteriorating Crypto Sentiment

As the largest cryptocurrency, Bitcoin is expected to experience over a 5% decline for the week, with sentiment towards the crypto space growing increasingly negative amid rising uncertainties.

Recent reports indicated that approximately $2 billion worth of confiscated tokens by the U.S. government could be up for sale, contributing additional downward pressure on Bitcoin’s value.

Furthermore, a general risk-averse mood prevailed, fueled by a series of disappointing economic indicators from the U.S. and China that raised fears about slowing growth. This prompted traders to seek more stable investments like gold, the U.S. dollar, and the Japanese yen. Global stock markets experienced a significant downturn on Thursday and Friday due to rising risk aversion.

Uncertainty surrounding the U.S. presidential election also added to the anxiety, particularly after a recent poll indicated that Democratic frontrunner Kamala Harris was now tied with Republican nominee Donald Trump, which could influence crypto regulation. The markets had previously rallied following statements from Trump regarding his potential support for the cryptocurrency sector if reelected. In contrast, Harris has not publicly addressed cryptocurrencies and is believed to continue the Biden administration’s strict stance against the industry, citing concerns over fraud.

### Analysts Highlight Key Technical Bitcoin Levels

In light of the recent drop, Bitcoin is currently trading near its 50-day moving average, a critical support level for many traders.

A market analyst observed that should Bitcoin continue to decline, the $63,000 and $61,000 levels—where the 50 and 200-day moving averages reside—will be pivotal. A breach of these supports could lead to a fall to $55,000, a scenario that many traders view as concerning.

August is historically one of Bitcoin’s weakest months, with the cryptocurrency ending the month in the green only five times out of the past 13 years. The average decline during this month has been 15.4%, whereas the average increase reached 26%.

The sell-off in Bitcoin also affected several Bitcoin exchange-traded funds (ETFs). While U.S.-listed BTC ETFs recorded a total daily net inflow of $50.6 million, funds such as GBTC, FBTC, ARKB, BITB, and HODL faced outflows. In contrast, Ether ETFs saw a collective net inflow of $26.75 million, although many displayed negligible movement.

### Crypto Prices Today: Altcoins Follow Bitcoin’s Downtrend

In the wider crypto market, many altcoins mirrored Bitcoin’s decline, showing few signs of recovery and also facing weekly losses.

The second-largest cryptocurrency by market cap fell 2% to $3,135.21, marking a projected 3.5% decline for the week. This decline came despite the recent launch of spot exchange-traded Ether funds in the U.S. markets.

Other altcoins experienced losses ranging from 2.5% to 6.5%, while meme tokens saw declines of around 3% each.