As an analyst with a background in cryptocurrency market analysis and a keen interest in following the latest trends, I find the recent downward trend in Bitcoin (BTC) and other major cryptocurrencies deeply concerning. Over the past week, we have seen BTC drop by another 3%, taking its value below $62,000 and wiping out any gains it recorded last week. The broader crypto market suffered losses of around 7%, with Ethereum (ETH), Cardano (ADA), Binance Coin (BNB), Solana (SOL), and memecoins all experiencing significant declines.
Over the past week, Bitcoin (BTC) has been on a steady decline, dropping an additional 3% on Monday, causing its value to dip below $62,000 and erasing any progress made during the previous week. The overall crypto market experienced a significant drop of around 7%, with Ethereum (ETH), Cardano (ADA), and Binance Coin (BNB) also suffering losses exceeding 4%. Solana (SOL) saw a more pronounced decrease of 7%, while memecoins collectively suffered a loss of approximately 5%.
Experts note that analysts are still observing persistent selling actions from both whales and miners, who are continuing to offload their Bitcoin rewards following the recent halving event. The combined value of these sales exceeds $1.2 billion over the past fortnight, a figure that is expected to climb as more wallets empty their reserves.
On Monday, significant price decreases resulted in approximately $150 million worth of long positions being closed against traders’ will. Long positions represent investors’ beliefs that Bitcoin’s price will increase. These traders were forced to close their positions due to mounting losses and insufficient funds to keep up with the falling prices. Conversely, short positions, which bet on Bitcoin’s price decrease, saw approximately $9 million in gains as these positions were liquidated.
In addition to the selling pressure from miner and whale activities causing Bitcoin’s price drop, there is also the German government’s contribution. Approximately 50,000 Bitcoins have already been sold since the beginning of the year, with the German Federal Criminal Police Office (BKA) disposing of around 3,000 BTCs recently. They hold approximately 47,000 more coins to sell, having seized them from a piracy site in 2013. Now, they are liquidating these assets by transferring them to exchanges such as Kraken and Coinbase.
The robust US dollar and the shift of investors towards less risky assets like the thriving technology index in the US market have curbed Bitcoin’s growth, resulting in its price decline. As Bitcoin loses value, large sums of money, totaling over $1 billion, have been withdrawn from Bitcoin ETFs listed in US markets during the past week.
Image by Pexels from Pixabay
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2024-06-25 10:03