Markets
Why does the price of Bitcoin continue to fall? Is the bear taking over the market?
Again, Bitcoin Price is stuck in the mud. Since June 5, Bitcoin The price of Bitcoin fell from $71,083 to $60,600, a sharp drop of more than 16%. This sharp drop has led many in the crypto community to question the reasons for Bitcoin’s continued struggles and inability to regain momentum.
What’s holding back Bitcoin? And is a recovery even possible? Dive deeper to find out why experts are worried and what it means for the future of crypto.
ETF exits intensify market pressure
According to Lookonchain, a leading blockchain analytics platform, outbound flows Bitcoin ETF continued to put pressure on the market. On June 28, nine ETFs saw a combined outflow of 4,428 Bitcoins, valued at approximately $271 million. Grayscale (GBTC) led these outflows with 3,375 BTC, followed by ARK Investment with 720 BTC. This significant selling pressure has undoubtedly affected Bitcoin’s price stability.
Despite the strong outflows, there was a net inflow of 596 Bitcoins into ETFs, worth about $36.49 million. This mixed activity indicates that while some ETFs are offloading their Bitcoin holdings, others are continuing to buy, reflecting a divided sentiment in the market.
Cooling PCE data
The price of Bitcoin has remained relatively stable despite recent US macroeconomic figures. The core price index of personal consumption expenditures (PCE), a key measure of inflation used by the Federal Reserve, rose at an annual rate of 2.6% in May, the smallest increase since March 2021. Over one month, the core personal consumption expenditure index saw a modest increase of just 0.1%, the slowest since November 2023.
However, Bitcoin continues to hover around the $60,000 mark, showing little reaction to these weak inflation numbers.
Government measures fuel investor concerns
Recent actions taken by the US government have increased market uncertainties. An address associated with the government transferred 11.84 BTC, worth approximately $726,000, to a new address. Although a relatively small transaction, it has sparked speculation about possible larger government measures, causing unease among investors who fear possible large-scale sales that could further depress prices. Bitcoin price.
Analyst sounds alarm
Market analyst Willy Woo has expressed concerns about Bitcoin’s support weakening below the $60,000 threshold. Woo warns that if Bitcoin fails to hold this level, it could trigger a significant downtrend, potentially taking the price to $54,000.
He attributes the recent price tests to $58,000 to liquidations of leveraged positions and selling pressure from miners, indicating that the market has not yet fully recovered from its downtrend and remains likely to further declines.
Read also: Ditch Solana and Stack These Three Altcoins Now!
Will institutional investors return or turn away from crypto? Stay tuned to find out.