Markets
Why is the price of Bitcoin falling sharply today
Bitcoin (BTC) price fell sharply over the past hour, falling below the $70,000 support level. This sharp decline may be linked to several factors, including strong U.S. employment data and a decrease in GameStop
stock price, which had a negative impact on the mood of the cryptocurrency market.
This dramatic drop led to the liquidation of over $300 million from the cryptocurrency market in the last hour.
Bitcoin Price Market Indicators
Therefore, the current crisis is reflected in Bitcoin market indicators. The Bitcoin Dominance metric, which indicates the percentage of the total cryptocurrency market capitalization owned by Bitcoin, increased by 1.04% to 53.69%. This indicates that even though Bitcoin is experiencing a retracement, its performance is still much better than other cryptocurrencies.
Additionally, the Bitcoin exchange reserve fell 0.06% to 1.81 million, suggesting that investors may be withdrawing Bitcoin to their personal wallets to hold and not sell on exchanges.
The Crypto Fear & Greed Index, which shows market sentiment, declined 1.28% to 77, meaning market sentiment is still in “greed” territory. However, extreme greed is usually the last phase of a bull market and is evident in the current situation.
Source: Coinglass
Additionally, CME BTC Futures Open Interest fell 2.19% to $11.12 billion, indicating traders are closing their positions, which could be due to loss of confidence in the market or consolidation period after recent price volatility.
Strong US jobs data
The recent Employment in the United States The status report also put negative pressure on the price of Bitcoin by revealing that 272,000 jobs were created in May, far more than the expected 185,000 jobs.
Therefore, rising employment numbers have reduced the chances of an interest rate cut from the Federal Reserve in the near future, leading to a rise in interest rates and the US dollar.
This change in the economic landscape has put negative pressure on risk assets, including cryptocurrencies.
GameStop Stocks and Crypto Market Sentiment
At the same time, a significant drop in GameStop Stock (GME) has also negatively affected sentiment in the cryptocurrency market. According to Coingape, the situation was precipitated by Roaring Kitty, a trader with a large following on social media platforms, during a live session on YouTube.
As expected, Roaring Kitty didn’t have much to say, which rather disappointed investors. GameStop shares were down 40% during the session and meme coin GME was down 50%. This type of bearish trend has also affected other meme cryptocurrencies like DOGE whose price fell by 8%, SHIB which fell by 10% and PEPE by 15%.
Despite the recent liquidation, spot Bitcoin ETFs have experienced their longest accumulation streak since their launch. Over a period of 18 consecutive days, these ETFs accumulated more than 56,000 Bitcoins, almost seven times the amount mined during that period. However, this was not enough to support a rise in the price of Bitcoin.
Source: CoinMarketCap
At press time, the price of Bitcoin was trading at $69,000, down 2.5% over the past 24 hours. Meanwhile, BTC’s market cap decreased by 2.52% to $1,362,313,410,346, while 24-hour trading volume jumped 48% to $36,296,396,359.
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