Is $62K Bitcoin’s June Bottom? Here’s Why the BTC Price is Crashing
The post Is $62K Bitcoin’s June Bottom? Here’s Why the BTC Price is Crashing appeared first on Coinpedia Fintech News
Bitcoin just took a nosedive, plunging below $62,607 and marking a new low for the month! What’s behind this sudden price drop, and where is Bitcoin headed next? We untangle the reasons for the recent slump and explore what experts are saying about the future.
Dive in for all the answers you seek.
Why is the Bitcoin Price Crashing?
Here are the price reasons pointed out by an expert, identified as Wise Advice on the X platform.
Miner Selling Pressure: One major reason behind Bitcoin’s recent price decline is the significant sell-off by miners. Since early June 2024, miners have sold over 30,000 BTC, amounting to about $2 billion. This selling has primarily taken place on exchanges, increasing selling pressure and driving down Bitcoin’s price.
FED Liquidity Reversal: Bitcoin’s price is closely tied to liquidity levels controlled by the Federal Reserve (Fed). In the past two weeks, the Fed’s liquidity measures have turned negative, directly affecting Bitcoin’s price. When the Fed reduces liquidity, it typically has a negative impact on high-risk assets like Bitcoin.
Absence of New Inflows: Another contributing factor to the price decline is the consistent outflow from Bitcoin ETFs observed over the past week. The lack of new investments has worsened selling pressure, further weakening Bitcoin’s market support.
Decline in the IFP Indicator: The Inter-Exchange Flow Pulse (IFP) indicator, which tracks Bitcoin movement from spot exchanges to derivative exchanges, has shown a downward trend. This indicates a growing bearish sentiment in the market, adding to the downward pressure on Bitcoin’s price.
It’s the June Trend All Over Again!
Historically, June has often been the month when Bitcoin reaches its lowest point of the year. This pattern has held true in recent years: in June 2020, Bitcoin dropped to $9,000; in June 2021, it hit $29,500; in June 2022, it reached $19,000; and in June 2023, it bottomed out at $24,700. Following this trend, analysts suggest Bitcoin may stabilize around $59,000 to $60,000 this month, potentially signaling a rebound.
Bitcoin Market Analysis
At the beginning of June 2024, Bitcoin was priced around $67,713. It briefly surged above $71,103 on June 5th before entering a downward trend. This decline has been marked by several large red candlesticks interspersed with smaller green ones on the daily BTC/USD chart. Over the past 30 days, Bitcoin has seen an overall 8.8% decrease, with a 5.2% drop in the past week and a 2.6% decline in the last 24 hours.
In summary, Bitcoin’s recent price drop can be attributed to significant miner sell-offs, changes in Federal Reserve liquidity policies, consistent outflows from Bitcoin ETFs, and a bearish market sentiment reflected in the IFP indicator. Despite the current challenges, historical data suggests June could be a pivotal month where Bitcoin establishes a new baseline before potential recovery.
Are you buying the dip, holding, or selling? Let us know your investment strategy!
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