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Bitcoin Sees Profit-Taking Around $70K Amid ‘Stubbornly Bullish’ Sentiment

Jun 3, 2024
  • Bitcoin price dipped to $69,200 amidst profit-taking and broader U.S. stock market movements.
  • Despite negative news, sentiment remains bullish due to long-term holder conviction and anticipation of further spot ETF approvals.
As a researcher with a background in financial markets and crypto, I have been closely monitoring the recent price movements of Bitcoin (BTC) and other major cryptocurrencies. The dip to $69,200 early Tuesday was a result of profit-taking after BTC briefly surpassed the $70,000 mark the previous day. This price action appeared to be influenced by broader U.S. stock market movements, as risky bets in the market were reflected in the crypto markets.As a researcher studying the cryptocurrency market, I observed that Bitcoin (BTC) dipped to $69,200 around Tuesday morning following profit-taking sessions after reaching a peak above $70,000 the previous evening. The price trends for major tokens exhibited varying patterns.

As a financial analyst, I’ve observed that Bitcoin prices have mirrored the trend of the broader U.S. stock markets recently, indicating heightened risk in the market. Notably, certain meme stocks and cryptocurrencies experienced significant gains exceeding 100%, fueled by the apparent resurgence of influential equity trader Keith Gill.

According to a recent statement from cryptocurrency exchange Bitfinex, the decline in bitcoin’s price since March may be attributed to long-term investors offloading their coins. Contrarily, data from the blockchain indicates that this trend has come to a halt, and investors have been amassing Bitcoin once again.

According to a report from on-chain analysis firm CryptoQuant, revealed to CoinDesk on Tuesday, approximately half of the long-term bitcoin stockpile hasn’t been active recently. This means no transactions or adjustments in balances have occurred in monitored wallets. Such stagnancy is indicative of solid long-term commitment and could potentially lead to more price increases.

The outlook on bitcoin’s persistent expansion continues to be “unyieldingly optimistic.” According to QCP Capital, a finance firm based in Singapore, there has been a surge in Bitcoin trading transactions.

Despite the unfavorable news about Mt. Gox and the DMM hack, the market has persistently remained optimistic, pushing Bitcoin’s price above $69,000 in Asia. QCP stated this in a broadcast message on Monday night. This bullish trend is expected to continue as investors eagerly anticipate the launch of an ETH spot Exchange Traded Fund (ETF), which could potentially bring in fresh demand.

“The firm explained another reason for their continued optimism is the growing number of investors taking long positions in major cryptocurrencies, hoping for imminent approval of new spot Exchange-Traded Funds (ETFs).”

As a crypto investor, I’ve noticed some intriguing shifts in the market today. Ether (ETH) and dogecoin (DOGE) experienced slight setbacks, shedding some value. On the other hand, Cardano’s ADA and Solana’s SOL demonstrated notable gains, with ADA rising by up to 3% and SOL following closely behind. The CoinDesk 20 (CD20), which represents the largest tokens excluding stablecoins, has climbed a modest 0.41% over the past 24 hours.
In the category of cryptocurrencies with a market value exceeding one billion dollars, Floki (FLOKI), which has a theme related to dogs, and Ethana’s Synthetic Dollar token, named ENA, experienced growth of over 10% in value.

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2024-06-04 09:44