Bitcoin overnight sell-off takes it below $56,000 before stabilizing

Bitcoin overnight sell-off takes it below ,000 before stabilizing


Vertigo3d | iStock | Getty Images

Bitcoin slid back toward $55,000 overnight as it caught up with Tuesday’s broader market sell-off.

On Wednesday, the price of the flagship cryptocurrency was lower by 2% at $56,589.80, according to Coin Metrics. It fell sharply Tuesday night — to as low as $55,673.80 — with the start of Asia-Pacific trading but has stabilized since then.

Tech stocks struggled in U.S. trading Tuesday – the sector is coming off worst day since September 2022 – while two readings of manufacturing production showed signs of weakness, rekindling fears about the health of the economy. Japan’s Nikkei 225 and the broad-based Topix finished Wednesday trading with their worst one-day loss since the Aug. 5 sell-off.

Stock Chart IconStock chart icon

hide content

Bitcoin tumbles overnight but stabilizes at $56,000

Lately, bitcoin’s moves are sometimes more muted than stocks’ during U.S. hours on big market days. James Davies, co-founder at crypto trading platform Crypto Valley Exchange, explained that traders react “more dynamically” to macro events during Asia trading.

“U.S. crypto trading accounts for around 30% of global volume, but it’s largely driven by institutional activity, especially in derivatives like CME futures, which are often less reactive to immediate market trends they have seen coming,” he said. “In contrast, the Asian market, contributing close to 50% of global volume, is more retail-focused. As a result, during Asian trading hours, bitcoin tends to respond more actively to global financial movements, such as stock market shifts.”

August was a tough month for bitcoin and its poor trading action could go on for another month. Analysts have warned that the cryptocurrency could slide back to $50,000 in September as traders wait for a sense of direction to emerge about U.S. interest rate cuts and the looming presidential election.

September is historically the worst month for bitcoin. The coin has finished higher in just three of the last 11 Septembers and the month has the largest average loss of the year for the coin at 4.8%, according to CoinGlass.

Don’t miss these cryptocurrency insights from CNBC PRO:



Source

Tesla investors are growing wary of Elon Musk’s futuristic promises
Technology

Tesla investors are growing wary of Elon Musk’s futuristic promises

Tesla CEO Elon Musk speaks alongside U.S. President Donald Trump to reporters in the Oval Office of the White House on May 30, 2025 in Washington, DC. Kevin Dietsch | Getty Images At Tesla, vehicle sales are slumping, profits are thinning and revenue from regulatory credit sales are poised to dry up due to Republican-led […]

Read More
Tesla plans ‘friends and family’ car service in California, regulator says
Technology

Tesla plans ‘friends and family’ car service in California, regulator says

A vehicle Tesla is using for robotaxi testing purposes on Oltorf Street in Austin, Texas, US, on Sunday, June 22, 2025. Tim Goessman | Bloomberg | Getty Images In an earnings call this week, Tesla CEO Elon Musk teased an expansion of his company’s fledgling robotaxi service to the San Francisco Bay Area and other […]

Read More
Meta names OpenAI’s Shengjia Zhao as chief scientist of AI Superintelligence Lab
Technology

Meta names OpenAI’s Shengjia Zhao as chief scientist of AI Superintelligence Lab

Meta CEO Mark Zuckerberg makes a keynote speech during the Meta Connect annual event, at the company’s headquarters in Menlo Park, California, on Sept. 25, 2024. Manuel Orbegozo | Reuters Meta CEO Mark Zuckerberg on Friday said Shengjia Zhao, the co-creator of OpenAI’s ChatGPT, will serve as the chief scientist of Meta Superintelligence Labs. Zuckerberg […]

Read More