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

Bitcoin (BTC) sought to reclaim $62,000 on Aug. 3 as markets inched higher after a fresh liquidation cascade.

BTC/USD 4-hour chart. Source: TradingView

BTC price tests $60,000 in stocks sell-off

Data from Cointelegraph Markets Pro and TradingView showed a 3% BTC price rebound taking shape after fresh multi-week lows of $60,435 on Bitstamp.

These accompanied a grim day for stocks worldwide, 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 short-term holder cost basis.

Liquidations mounted as a result, with data from monitoring resource CoinGlass putting the total crypto longs wipeout at $230 million for both Aug. 1 and Aug. 2.

Crypto liquidations (screenshot). Source: CoinGlass

“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 reaction on X.

“Slight panic across the board, as the markets are pricing in a substantial recession for the U.S.”US 2-year bond yields chart. Source: Michaël van de Poppe/X

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.

Source: The Kobeissi Letter

“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 explained.

Data from CME Group’s FedWatch Tool put market odds of a smaller 0.25% cut at 78% on the day.

Fed target rate probabilities. Source: CME Group