Bitcoin
Bitcoin Price Hits Lowest Level in a Month Amid $600 Million Outflows
Bitcoin, the leading cryptocurrency, has recently experienced a downturn, reaching its lowest point in a month due to significant withdrawals from investments in digital assets. On June 18, 2024, BTC dropped 2.1%, matching levels last seen in mid-May, before stabilizing.
What is causing the recession? Here’s a deep dive.
Investors retreat amid economic uncertainty
Recent data from CoinShares International shows a substantial withdrawal of $600 million from digital asset products last week, marking the largest outflow since March. This trend comes amid ongoing concerns about inflation, leading investors to scale back expectations for interest rate cuts from the Federal Reserve this year. This caution poses a significant challenge for speculative assets like cryptocurrencies.
Performance Analysis: Stocks and Bonds Vs. Bitcoin
In a notable shift from the previous quarter, where Bitcoin outperformed stocks and bonds, the current quarter saw traditional assets take the lead. This move highlights the volatile and speculative nature of the cryptocurrency market.
Bitcoin is currently trading at $65,634, down from its peak of $71,100 in early June. Since the start of 2024, Bitcoin has seen significant price swings, starting at around $44,000 in early February, driven by demand for US exchange-traded funds. However, it peaked at $73,798 in mid-March before cooling off along with reduced flows into ETFs.
What Technicians Are Telling Us
The 30-period simple moving average (SMA) for Bitcoin is $68,457, with the 30-period exponential moving average (EMA) slightly lower at $67,416 – both values above the current market price of $65,634 .
Bitcoin ETFs currently hold a total market cap of $82.04 billion, with Bitcoin Futures at $2.31 billion and Bitcoin Spot ETFs at $79.74 billion. In the last 24 hours, Bitcoin ETFs recorded a trading volume of $1.38 billion, including $160.31 million from Bitcoin Futures and $1.22 billion from Bitcoin Spot ETFs.
Future outlook
Bitcoin’s recent decline highlights the ongoing challenges facing the cryptocurrency market, influenced by broader economic factors and investor sentiment. As traders navigate these fluctuations, Bitcoin’s trajectory continues to be the subject of intense speculation and scrutiny.
Read too: Top Altcoins to keep an eye on next week!
The next chapter in Bitcoin’s history is yet to be written. What role will it play in the future of finance?