As a researcher with a background in cryptocurrencies and blockchain technology, I have been closely monitoring the recent developments in the Bitcoin market. The past few days have been particularly challenging for investors as the price of Bitcoin dropped below the crucial support level of $60,000, leading to significant losses in the leveraged markets.
The price of Bitcoin (BTC) followed its recent downward trajectory and fell below the $60,000 support mark over the last 24 hours. As a result, BTC decreased by nearly 4 percent and was priced around $58,453 during early European trading on Thursday.
I’ve noticed that over $275 million have been lost in the crypto leveraged markets recently. Around $245 million of this total was from long traders.
Top Reasons Bitcoin Price Is Melting
In the previous month, Bitcoin’s price has experienced a downturn due to pessimistic attitudes among large-scale investors, including whales and institutions. The crypto community has been keeping an eye on the upcoming distribution of approximately $9 billion in Bitcoins from Mt.Gox. Many market analysts predict that this event will have a negative impact on the industry as a whole.
Based on information from OmniChain, as reported by Spot On Chain, a significant Bitcoin investor, believed to represent an institutional player, transferred over 3,500 Bitcoins to Binance on Thursday.
Below $60k, the Bitcoin market may continue to see subdued demand from investors, as they wait for signs of market stabilization. The optimal moment to purchase Bitcoin at a discount could be when there’s growing uneasiness and doubt among traders regarding the market’s rebound.
Based on Coinspeaker’s report, the price of Bitcoin has become bearish in the medium term due to significant withdrawals from Bitcoin spot ETFs. According to recent market figures, US spot Bitcoin ETFs experienced a net withdrawal of approximately $20 million on Wednesday, with Grayscale’s GBTC leading the way. Notably, only Fidelity’s FBTC recorded a positive cash inflow of around $7 million, while the remaining ETFs did not record any cash flow on that day.
After Federal Reserve officials hinted during their June meeting that inflation might be easing, the cryptocurrency market shifted to a downturn, as it became uncertain if there would be any subsequent interest rate reductions.
As a market analyst, I’ve noticed that the persistent regulatory actions from the US Securities and Exchange Commission (SEC) towards Web3 companies have cast a shadow over the bullish sentiment surrounding the potential listing of spot Ethereum Exchange-Traded Funds (ETFs).
What Next for BTC Price Action
Following the Bitcoin halving and the excitement surrounding the potential approval of a spot Bitcoin ETF, the cryptocurrency’s price has entered a period of re-accumulation. Data from IntoTheBlock indicates that approximately 16% of Bitcoin holders have been left with losses as the price dipped below the crucial support level around $60,000.
Due to increased selling pressure, Bitcoin’s price might trend toward the next notable buying opportunity, which lies between $40,000 and $50,000.
Despite the current downturn in Bitcoin’s price as indicated by on-chain data from CryptoQuant, there are signs of an upcoming rebound. Miner capitulation levels, which reached a peak towards the end of 2022 during the FTX incident, could signal this turning point. However, if Bitcoin fails to recover within the next two weeks, further crypto sell-offs may occur before the anticipated parabolic rally takes place.
Read More
- From Season 4 Renewed With Release Date Window & Episode Count
- DEXE PREDICTION. DEXE cryptocurrency
- TURBO PREDICTION. TURBO cryptocurrency
- WIF PREDICTION. WIF cryptocurrency
- ZEN PREDICTION. ZEN cryptocurrency
- Yes, Vanessa Morgan & James Karnik Are Engaged
- PEOPLE PREDICTION. PEOPLE cryptocurrency
- FIS PREDICTION. FIS cryptocurrency
- FIL PREDICTION. FIL cryptocurrency
- XRD PREDICTION. XRD cryptocurrency
2024-07-04 12:27