Why Is Bitcoin (BTC) Price Falling Rapidly Today?
Bitcoin (BTC) price has seen a downward trend over the past few days, causing it to lose a significant percentage of its recent gains.
Bitcoin Price’s New Weekly Low
According to CoinMarketCap data, Bitcoin price is trading at $65,423.17, down 3.1% in the last 24 hours. This level is the lowest the cryptocurrency has seen in more than a week.
Unfortunately, this decline led to crypto long position liquidations that exceeded $100 million in one hour and $150 million in the past day. Various factors with a combined effect are currently contributing to the decline in Bitcoin price.
It was discovered that some whales abandoned their Bitcoin holdings. To be exact, a Bitcoin whale transferred 15,975 units of the flagship cryptocurrency on Friday. It was claimed that the coins were moved to the digital asset exchange Binance in a single transaction. This massive whale dump signals a bearish trend and likely contributed to the decline the cryptocurrency has recorded.
There is also a recent low mining revenue situation following the Bitcoin halving event held in April. X’s Ali Martinez noted that the cost of mining Bitcoin increased significantly immediately after the halving. Currently mining a single BTC costs an average of $77,000.
“This increase in spending led to a wave of capitulation among #BTC miners last month,” Ali said.
With this situation, miners’ income dropped to $ 35,000 after rising to $ 78,000. This 55% decline may have triggered the selling pressure experienced by Bitcoin. Bitcoin hash rate is also showing signs of decline as more resources are now needed to mine a block. As a result, the increase in Bitcoin’s over-the-counter (OTC) sales cannot be ignored in its current price impact.
According to Deribit, approximately 97,782 BTC options worth $6.55 billion will expire by June 28. With a put call ratio of 0.49 and a maximum pain point of $55,000, Bitcoin price may remain under selling pressure for a long time.
Spot Bitcoin ETF Demand to Move Bitcoin Forward
The market outlook for the coin may also go in the other direction of the bull run with a major reversal.
Spot Bitcoin ETF demand, in particular, could push the Bitcoin price towards the positive predictions recently made in favor of Bitcoin. Bitcoin advocate and market trader PlanB thinks the Bitcoin price is on track to end this year at $100,000, with a target of $500,000 by 2025.
Mike Novogratz, CEO of Galaxy Digital, also praised improved regulations and predicted that the Bitcoin price could reach $100,000 by the end of the year. The next few weeks will determine which direction the Bitcoin price will go, especially if the current decline is extended.
Read More: ripple CLO Criticizes Gensler’s Use of “Crypto Asset Securities”
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Benjamin Godfrey is a blockchain enthusiast and journalist who enjoys writing about real-life applications of blockchain technology and innovations to ensure mainstream acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain-based media and sites. Benjamin Godfrey is a lover of sports and agriculture. follow him excitementLinkedIn
The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. Neither the author nor the publication accepts any liability for your personal financial loss.
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