Why Is Bitcoin (BTC) Price Falling Rapidly Today?

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As an experienced financial analyst, I’m closely monitoring the recent downtrend in Bitcoin (BTC) prices and the factors contributing to it. The current price of $65,423.17, which represents a 3.1% drop within the last 24 hours and a new weekly low, is a cause for concern.

In the past several days, Bitcoin‘s (BTC) price has been declining noticeably, resulting in a substantial loss of the recent gains it had amassed.

New Weekly Low for Bitcoin Price

Based on information from CoinMarketCap, the current Bitcoin price is at $65,423.17, representing a 3.1% decrease over the past 24 hours. This is the cheapest level for the cryptocurrency in over a week’s time.

As an analyst, I’ve observed that the recent drop in price triggered a significant wave of crypto long position liquidations, totaling over $100 million within the hour and surpassing $150 million over the past day. A combination of factors seems to be driving down the current Bitcoin price.

Recently, it came to light that certain whales have been offloading their Bitcoin holdings. Specifically, on Friday, a significant Bitcoin whale transferred a large quantity of 15,975 coins to the digital asset exchange Binance. The sizeable transaction suggests a pessimistic outlook and may have played a role in the current downturn for the cryptocurrency.

Another scenario to consider is the decrease in Bitcoin mining revenue, which emerged following the halving event in April. According to Ali Martinez on X, the expenses for Bitcoin mining surged noticeably post-halving. At present, the average cost to mine a solitary Bitcoin is approximately $77,000.

I’ve noticed a significant increase in mining costs over the past month, which has resulted in many Bitcoin (#BTC) miners giving up on their operations. – An Analyst’s Perspective

In this scenario, miners’ income plummeted from $78,000 to $35,000, representing a substantial 55% decrease. This significant drop could have contributed to the selling pressure currently impacting Bitcoin. Moreover, the Bitcoin mining hashrate indicates a decline as more resources are needed to mine a block. Additionally, there’s an increase in over-the-counter (OTC) sales of Bitcoin that might be influencing its current price trend.

Based on Deribit’s data, approximately 97,782 Bitcoin options with a total value of around $6.55 billion are due to expire by June 28th. The put-call ratio stands at 0.49, and the maximum pain point is currently set at $55,000. This implies that there is a greater demand for put options than call options, suggesting that Bitcoin’s price may continue experiencing downward pressure in the near term.

Spot Bitcoin ETF Demand to Push Bitcoin Forward 

The market outlook of the coin could also go the other of a bull run in a major twist.

As a researcher studying the Bitcoin market, I’ve observed that demand for Bitcoin ETFs could potentially have a significant impact on Bitcoin’s price trend. For instance, if an ETF is approved and sees strong investment inflows, it could push Bitcoin prices upwards, aligning with the bullish predictions made by prominent Bitcoin advocates like PlanB. He anticipates Bitcoin to reach $100,000 by year-end and aims for a price target of $500,000 by 2025.

Mike Novogratz, CEO of Galaxy Digital, predicted that Bitcoin’s price could reach $100,000 by the end of the year due to favorable regulatory developments. The coming weeks will be crucial in determining Bitcoin’s price direction, especially if the current downtrend continues.

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2024-06-14 21:22