Bitcoin
Why did Bitcoin price fall today? BTC price drops to $64K
Jitters in the crypto market – again?
Bitcoin Price recently fell below $65,000, influenced by a German government sell-off and outflows. Bitcoin ETFs. While major players like MicroStrategy continue to buy during dips, overall market sentiment remains cautious as the first half of the year ends, bringing significant volatility.
According to Santiment, traders are feeling a mix of fear and disinterest as Bitcoin fluctuates between $65,000 and $66,000. However, historical trends suggest that when traders sell and institutional investors buy, Bitcoin tends to recover, rewarding patient investors.
🫣 The crowd is mostly scared or uninterested in Bitcoin as prices range between $65K and $66K. This prolonged level of FUD is rare as traders continue to capitulate. BTC trader fatigue combined with whale accumulation often leads to patient-rewarding bounces. pic.twitter.com/WMy3lbdjEB
– Santiment (@santimentfeed) June 20, 2024
Why are Bitcoin Bears winning?
Liquidation of the German government
The recent decline in the price of Bitcoin can largely be attributed to the actions of the German government. Reports from Arkham Intelligence indicate that Germany sold approximately $65 million worth of Bitcoin on platforms such as Coinbase, following an earlier transfer of $130 million to exchanges such as Kraken and Bitstamp.
UPDATE: German government still sells BTC >$195 million so far.
In the last 2 hours, the German government sent $65 million worth of BTC to 2 likely exchange deposits, including Coinbase.
The German government moved $600 million worth of BTC yesterday, sending $130 million worth of BTC to 4 likely exchange deposits, including… pic.twitter.com/in2urlDBE0
– Arkham (@ArkhamIntel) June 20, 2024
These moves involve Bitcoin seized from piracy site Movie2k.to in 2013, with Germany still holding a substantial $3.05 billion in BTC.
ETF exits
At the same time, Bitcoin ETFs experienced significant outflows, increasing downward pressure on prices. This lack of confidence among investors has further fueled the prevailing bearish sentiment in the market.
Nvidia’s impact on BTC
In contrast to Bitcoin’s struggle, the US stock market, particularly driven by technology giants like Nvidia, is performing well. Nvidia’s market capitalization rose to $3.4 trillion, surpassing France’s GDP and the entire crypto market. This stock market strength, coupled with speculation about a potential rate cut by the US Federal Reserve before November, could provide some hope for a recovery in the crypto market.
It’s time for some strategy!
Despite the downtrends, large entities like MicroStrategy are capitalizing on lower prices, indicating a belief in a future bull run. However, the broader market, including traders and institutions, remains bearish for now.
After a $72,000 rejection earlier this month, Bitcoin it has corrected by more than 10% from the June peak. With critical support levels breached, Bitcoin now faces the risk of falling further towards $60,000. Analysts, including Willy Woo, emphasize that Bitcoin’s recovery depends significantly on the exit of weaker miners from the market and the subsequent stabilization of the hash rate.
Read too: Here is a list of the top Altcoins that will lead the ‘Recovery Rally’
Are you buying the dip or waiting for more dip? Share your thoughts.