Markets
Bitcoin Price Hits One-Month Low Amid $600 Million Outflows
Bitcoin, the leading cryptocurrency, has seen a slowdown recently, reaching its lowest point in a month due to significant withdrawals from digital asset investments. On June 18, 2024, BTC fell 2.1%, matching levels last seen in mid-May before stabilizing.
What is causing the slowdown? Here is an in-depth analysis.
Investors shy away from economic uncertainty
Recent data from CoinShares International shows a substantial $600 million withdrawal from digital asset products last week, marking the highest outflow since March. The trend comes amid lingering concerns about inflation, leading traders to lower their expectations for the Federal Reserve to cut interest rates this year. Such caution poses a significant challenge to speculative assets such as cryptocurrencies.
Performance analysis: stocks and bonds vs. Bitcoin
In a notable change from the previous quarter, where Bitcoin outperformed stocks and bonds, the current quarter saw traditional assets take the lead. This change highlights the volatile and speculative nature of the cryptocurrency market.
Bitcoin is currently trading at $65,634, down from its high of $71,100 in early June. Since the start of 2024, the price of Bitcoin has seen significant fluctuations, starting around $44,000 in early February, due to demand for US exchange-traded funds. However, it peaked at $73,798 in mid-March before calming down alongside reduced flows into ETFs.
What the techniques tell us
The 30-period simple moving average (SMA) for Bitcoin is $68,457, with the 30-period exponential moving average (EMA) slightly lower at $67,416, both figures higher than the current market price of $65,634.
Bitcoin ETF currently hold a total market cap of $82.04 billion, with Bitcoin Futures at $2.31 billion and Bitcoin Spot ETFs at $79.74 billion. Over the past 24 hours, Bitcoin ETFs saw $1.38 billion in trading volume, with $160.31 million coming from Bitcoin Futures and $1.22 billion from Bitcoin Spot ETFs.
Future prospects
Bitcoin’s recent decline highlights the ongoing challenges facing the cryptocurrency market, influenced by broader economic factors and investor sentiment. As traders deal with these fluctuations, Bitcoin’s trajectory remains a subject of intense speculation and scrutiny.
Read also: Best Altcoins to Watch Next Week!
The next chapter in Bitcoin’s story has yet to be written. What role will it play in the future of finance?