Bitcoin has seen an unexpected decline today, below are the main reasons that have impacted BTC price.
Traders were surprised when The cryptocurrency market fell into the red today when the market only slightly recovered yesterday. In particular, the value of Bitcoin has dropped below 64,000 USD and hit the lowest level of 63,421.3 USD.
At the time of writing, BTC is trading for around $64,191, seeing a drop of 1.12% over the past 24 hours.
Vietnam’s Bitcoin price dropped sharply during the day in accordance with the context U.S. Bitcoin Spot ETFs Suffering Strong Outflows, totaled $139.88 million on Thursday.
Traditionally, Bitcoin price movements reflect ETF flows. However, analysts say this downturn is also due to many factors that have changed in the past few weeks.
According to Arkham Intelligence, Bitcoin selling pressure could come from German government, when they moved approx $195 million in BTC on exchanges since June 19. Data shows that the government still holds about $3 billion in BTC.
UPDATE: German Government Still Selling BTC > $195M So Far.
In the past 2 hours, the German Government sent $65M in BTC to 2 likely exchange deposits including Coinbase.
The German Government moved $600M BTC yesterday, sending $130M BTC to 4 likely exchange deposits including… pic.twitter.com/in2urlDBE0
— Arkham (@ArkhamIntel) June 20, 2024
Another factor to consider is hedge fund exposure with this top property. According to André Dragosch, Head of Research at ETC Group, hedge funds have reduced their exposure to the market down to only 0.37 in the last 20 trading days, unprecedented low as of October 2020.
BOOM: Crypto hedge funds have really thrown in the towel on #Bitcoin lately.
They have reduced their $BTC market exposure to only 0.37 over the past 20 trading days. 👀
Lowest since October 2020. pic.twitter.com/WZCRK9QlMG
— André Dragosch | Bitcoin & Macro ⚡ (@Andre_Dragosch) June 19, 2024
Finally, the macroeconomic factors including the Federal Reserve’s (Fed) stance on interest rates, could also influence markets as a cut is not likely to happen until later this year.
The Fed said it needs more data to be confident that inflation is on track to reach its 2% target. Therefore, Bitcoin price downtrend may be aggravated by these factors.
Analyst: Bitcoin bull market begins to slow down
