Bitcoin
Why did Bitcoin price fall today? BTC price drops to $64K
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 Sanction, there is widespread fear and disinterest among traders regarding Bitcoin as its price fluctuates between $65,000 and $66,000. Despite this fear, when traders sell their holdings and large investors buy, the market often recovers, rewarding patient investors.
Top Reasons Why Bitcoin Bears Reigned
Liquidation of the German government
The downward trend in the price of Bitcoin may be linked to the German government’s selling spree. Arkham Intelligence Data show that Germany transferred $65 million worth of Bitcoin to exchanges like Coinbase, contributing to downward pressure. This follows an earlier transfer of $130 million to exchanges including Kraken and Bitstamp. These actions stem from Bitcoin seized from piracy site Movie2k.to in 2013. At present, they still hold $3.05 billion worth of BTC.
ETF exits
Along with government sales, Bitcoin ETFs have seen significant outflows, further contributing to the price decline. This lack of investor confidence contributed to the 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.
Buying the dip
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.
What’s Next for BTC Price?
Interestingly, after a strong rejection at $72,000 earlier this month, Bitcoin Price saw a decline, correcting more than 10% from its June high. Losing crucial support levels, Bitcoin is now at risk of falling towards $60,000. According to historical trends, the capitulation of Bitcoin miners usually continues for months after the halving. Analyst Willy Woo highlights that the recovery of Bitcoin’s price depends significantly on the exit of weak miners from the market and the subsequent recovery of the hash rate.
Conclusion
With the latest price action, bears demonstrated enormous dominance as Bitcoin price fell below key support. On the other hand, traders and institutions do not appear optimistic as whales prepare for the next bull run, which has not yet begun.
Read too: Here is a list of the top Altcoins that will lead the ‘Recovery Rally’