Markets
Why is the price of Bitcoin falling today? BTC Collapses to $55,000 Imminent?
The cryptocurrency market continues to bleed and cause investors to lose billions as the market capitalization plummets from $2.44 trillion to $2.33 trillion on Tuesday. Data from Coinglass indicates that nearly $500 million in cryptocurrencies have been liquidated, with Ethereum (ETH), Bitcoin (BTC), Dogecoin (DOGE), Shiba Inu (SHIB), and Solana (SOL) leading the liquidation (in order decreasing).
Despite the cryptocurrency market recovering today, the price of Bitcoin remains under pressure, raising concerns of a massive drop in the coming days.
What is causing the cryptocurrency market to decline?
The cryptocurrency market selloff was triggered by Bitcoin’s loss of bullish momentum due to factors such as macroeconomics, capitulation of the miners
Bitcoin ETF outflows and lack of new stablecoin issues.
According to Coinglass, $500 million worth of popular cryptocurrencies have been liquidated in the last 24 hours. Over 173,000 traders liquidated in the last 24 hours, with the largest single liquidation order on cryptocurrency exchange Binance when someone sold ETH valued at $6.44 million.
Behind the latest crisis there are macro and geopolitical factors. Despite the cooling of the United States IPC and PPI inflation data, Fed officials stick to the FOMC’s decision for a one-time rate cut this year. Bank of Japan Governor Kazuo Ueda was aggressive about raising interest rates again at his July meeting.
As a result, the US dollar index (DXY) rose to 105.4 today, continuing to remain volatile in recent days. Furthermore, US Treasury yields it also rose to 4.298% as investors look for new signals, expected this week, that could provide more insight into the market’s direction.
Meanwhile, the Bitcoin spot ETF has recorded 4 consecutive outflows. On Monday, the net outflow from Spot Bitcoin ETF it was $146 million. This significant movement indicates a change in sentiment among investors.
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The price of Bitcoin drops towards 60 thousand dollars
As reported by CoinGape, over 100,000 BTC Options The notional value of $6.58 billion will expire on June 28, according to the largest derivatives exchange, Deribit. With a put-call ratio of 0.50 and a high critical point at $55,000, this indicates that the Bitcoin price may continue to remain under selling pressure until then.
BTC price it currently trades at $65,597, down 0.20% in the last 24 hours and 3% in a week. The 24-hour lows and highs are $64,066 and $65,786, respectively. However, trading volume declined as traders switched to altcoins over the past 24 hours.
However, experts argue that the election year and current geopolitical conditions are both Bitcoin and gold is desirable for investors. Charlie Morrisinvestment director and founder of ByteTree, e Alexander Chartresa fund manager from Ruffer, said investors need to buy Bitcoin to diversify.
Read also: Ripple CEO Hints at Massive Crypto Funding in US Presidential Election