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Here’s Why the Bitcoin Price is Crashing
Since the beginning of June, investors I watched Bitcoin (BTC), the world’s first cryptocurrencywith an increasingly suspicious eye.
Indeed, despite long-held hopes that the various positive developments of 2024 – like the endorsement spot BTC Exchange Traded Funds (AND F) – will lead the coins increase prices around $100,000 or even at $300,000 as some experts predicted, the reality crypto market the movements were very different.
For much of the last 30 days, BTC has been in a downward trend and has fallen as much as 11.23%. Bitcoin’s price today stands at $61,437, well below its multi-month average of between around $65,000 and $67,000.
30-day BTC price chart. Source: Finbold
While it is difficult to pinpoint with certainty the source of the current selling pressure that has caused BTC to fall from just under $67,000 to just over $61,000, the past few weeks have seen several events that may have made traders “happy to sell,” leading to some $100 billion in investment. losses over time.
Why does Bitcoin crash?
Around the middle of the month, the German government started to file large quantities of BTC seized in January at several cryptocurrency exchangesincluding Coinbase (NASDAQ: PIECE OF MONEY), Krakenand Bitstamp.
The move quickly sparked some concerns among investors given that the Central European country has up to 50,000 Bitcoins for sale – an amount that could easily cause significant price disruptions.
Yet previous government sales of significant amounts of BTC – the best example being the US sale of 50,000 Bitcoins seized on the dark web network Silk Road – show that it is unlikely that law enforcement outages will lead to a fall in prices.
Still, fears were likely only fueled by the May announcement that bankrupt cryptocurrency exchange Mt. Gox was ready to start redistributing assets to its creditors and fully ignited by a June 24 confirmation, payments will begin in July.
Given that this includes around $9 billion worth of Bitcoin, there is a risk that this will cause significant selling pressure and a near guarantee that the fears will lead to real selling pressure.
Alongside major movements resulting from rather rare BTC whales, the low volume reported at the beginning of June is likely to have amplified possible price variations linked to sales.
Additionally, recent technical analysis results (YOUR) conducted by several prominent cryptocurrency experts – results that suggest a a substantial downward trend is comingmay have frightened investors more.
Finally, the aforementioned optimistic price targets – especially following the Bitcoin halving, but also more recently when Chartered standard announced the set up of a BTC spot and Ethereum (ETH) trading desk – may have caused traders to lose patience and start making profits while the world’s leading cryptocurrency stagnated near $67,000 for several months.
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