Why is Bitcoin Price Falling Below $65K Again

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As a researcher with extensive experience in the cryptocurrency market, I’ve closely followed the recent developments in Bitcoin (BTC) and its price movements. The latest news of large whale transactions and government actions have once again influenced the market, causing BTC to fall below $65,000.

As a crypto investor, I’ve noticed that the price of Bitcoin has dipped once more, trading now beneath the $65,000 mark. This downturn can be attributed to the volatile nature of the cryptocurrency market as well as interventions from various governments.

Approximately $259.40 million worth of Bitcoin, which is equal to 4,000 units, has moved from one unidentified digital wallet to another newly identified wallet within the cryptocurrency market.

Bitcoin Whale Activity

As a crypto investor, I’ve been keeping an eye on the market trends using Whale Alert, an on-chain data platform. Recently, they reported some significant whale activities. Specifically, two transactions involving 2,000 BTC each were transferred from unidentified wallets to newly created anonymous wallets. That equates to approximately $129.70 million per transaction. These large transactions can potentially influence the market price and are worth monitoring closely.

2,000 #BTC (129,937,132 USD) transferred from unknown wallet to unknown new wallet
— Whale Alert (@whale_alert) June 20, 2024

Transactions involving over 4,000 Bitcoins, equivalent to approximately $259.4 million, are closely monitored by market players as potential indicators of impending price shifts.

As an analyst, I’ve noticed that the German government’s latest actions have influenced the Bitcoin market as well. They’ve transferred 1700 BTC, equivalent to approximately $110.88 million, into popular exchanges like Coinbase, Kraken, and Bitstamp. Simultaneously, they continue holding onto around 47,179 BTC, or roughly $3.06 billion. This transaction has sparked speculation about potential large-scale sales, which could significantly affect the current market price.

BTC Derivatives Data

Based on Coingeasiness data, the trading volume for Bitcoin derivatives has risen by 1.95% to reach a total of $49.35 billion. This significant uptick in trading activity indicates that a larger number of investors are now participating in the Bitcoin derivative market, which is typically active during market conditions characterized by heightened volatility.

Alternatively, open interest has decreased by approximately 47% to reach $34.16 billion. This signifies a reduction in the number of active open contracts, suggesting that certain traders have chosen to close their existing positions rather than entering into new ones.

Why is Bitcoin Price Falling Below $65K Again

As a researcher, I’ve observed a significant reduction of 39.73% in the trading volumes of the options market, resulting in a total value of approximately $625.97 million. This contraction could potentially be linked to a decrease in the use of options for both speculative and hedging purposes. Possible explanations include investor concerns over current market volatility or anticipation of lower future volatility.

The open interest for options has grown by 2.18%, amounting to $10.24 billion now. This expansion implies that while the number of freshly opened contracts has decreased, the existing ones remain vigorously traded. Market participants may be doing so in preparation for potential future price shifts.

Bitcoin Price Trend

At present, the bearish trend over Bitcoin had weakened by press time, causing its price to sit at $65,041. Simultaneously, Bitcoin’s market cap grew by 0.06% to reach a total value of $1,282,400,498,042. Conversely, the trading volume for the previous 24 hours saw a decrease of 2.18%, amounting to $24,801429,542.

Jun 20 Update:

As a crypto investor, I’ve noticed that nine Exchange-Traded Funds (ETFs) collectively decreased their Bitcoin holdings by approximately $1,290 worth of Bitcoins or around $83.7 million in total. Among these, Fidelity specifically reduced its holdings by the same amount, leaving them with roughly 168,862 Bitcoins worth about $10.95 billion at present. Blackrock and Grayscale, however, have yet to disclose their latest Bitcoin holdings.

— Lookonchain (@lookonchain) June 20, 2024

As a crypto investor, I’ve noticed an intriguing pattern in the data from Lookonchain. Nine ETFs have collectively dumped 1,290 Bitcoin on the market, equating to a decrease in market capitalization of approximately $83.7 million. This mass selling could be adding to the downward pressure on Bitcoin’s price. Additionally, Fidelity’s Bitcoin ETF has followed suit, disposing of an identical 1,290 Bitcoin, leaving them with a total holding of 168,862 Bitcoin worth around $10.95 billion.

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2024-06-20 22:44