Why is the Bitcoin price currently declining? News Bitcoin by Carding Forums on June 27, 2024
After experiencing some recovery on Wednesday as a result of the turnaround in the net flows from Spot Bitcoin ETFs, the Bitcoin price is currently in a decline once more. However, the pioneer cryptocurrency appears to have resumed the downtrend just one day later, and this decline following the recovery has begun a worrying trend. So, what are the driving forces behind this decline?
The significant sell-offs that have rocked the digital asset are one of the main factors that have contributed to the Bitcoin price decline. These sell-offs are not just caused by any investor; rather, they are the result of substantial BTC sales orchestrated by powerful governments.
The fact that the German government had begun selling coins was one of the most significant pieces of information to hit the space. The German government sold approximately 2,786 BTC, worth approximately $US140 million at the time of sale.
However, the government of Germany is not the only one selling. Additionally, it was reported that the US government had begun moving the Bitcoin that had been seized from the Silk Road bust once more. Arkham, an on-chain data aggregator, reported that the US government had transferred nearly 4,000 BTC to the Coinbase exchange from its wallets.
At the time of the transaction, the US government transferred 3,940 BTC to the exchange, or $241.22 million. This transfer is worrying because coin sales typically take place on centralized trading platforms like Coinbase, which have greater liquidity than decentralized trading platforms.
Is Bitcoin at its lowest point?
There are indications that the bottom has been closed, even though the downtrend appears to have resumed. The re-emergence of demand in the market is one of these indicators. For instance, the Spot Bitcoin ETFs had experienced outflows for seven days in a row before turning around on Tuesday. According to Coinglass data, Spot Bitcoin ETF inflows exceeded $50 million between Tuesday and Wednesday, concluding a brutal week of outflows.
The investors' profit and loss margin is another possible indicator. This shows how many Bitcoin investors are currently making money. The higher the profitability, the more likely it is that the market will fall as investors cash in on their positions.
Investors are less likely to sell their holdings while they wait for better prices because profitability levels have dropped. Demand typically has time to build up and establish a potential bounce point for recovery as a result of this.
At the time of writing, the Bitcoin price is holding steady at the $61,000 support. However, the pioneer cryptocurrency may soon fall below $60,000 if sell-offs resume.
After experiencing some recovery on Wednesday as a result of the turnaround in the net flows from Spot Bitcoin ETFs, the Bitcoin price is currently in a decline once more. However, the pioneer cryptocurrency appears to have resumed the downtrend just one day later, and this decline following the recovery has begun a worrying trend. So, what are the driving forces behind this decline?
The significant sell-offs that have rocked the digital asset are one of the main factors that have contributed to the Bitcoin price decline. These sell-offs are not just caused by any investor; rather, they are the result of substantial BTC sales orchestrated by powerful governments.
The fact that the German government had begun selling coins was one of the most significant pieces of information to hit the space. The German government sold approximately 2,786 BTC, worth approximately $US140 million at the time of sale.
However, the government of Germany is not the only one selling. Additionally, it was reported that the US government had begun moving the Bitcoin that had been seized from the Silk Road bust once more. Arkham, an on-chain data aggregator, reported that the US government had transferred nearly 4,000 BTC to the Coinbase exchange from its wallets.
At the time of the transaction, the US government transferred 3,940 BTC to the exchange, or $241.22 million. This transfer is worrying because coin sales typically take place on centralized trading platforms like Coinbase, which have greater liquidity than decentralized trading platforms.
Is Bitcoin at its lowest point?
There are indications that the bottom has been closed, even though the downtrend appears to have resumed. The re-emergence of demand in the market is one of these indicators. For instance, the Spot Bitcoin ETFs had experienced outflows for seven days in a row before turning around on Tuesday. According to Coinglass data, Spot Bitcoin ETF inflows exceeded $50 million between Tuesday and Wednesday, concluding a brutal week of outflows.
The investors' profit and loss margin is another possible indicator. This shows how many Bitcoin investors are currently making money. The higher the profitability, the more likely it is that the market will fall as investors cash in on their positions.
Investors are less likely to sell their holdings while they wait for better prices because profitability levels have dropped. Demand typically has time to build up and establish a potential bounce point for recovery as a result of this.
At the time of writing, the Bitcoin price is holding steady at the $61,000 support. However, the pioneer cryptocurrency may soon fall below $60,000 if sell-offs resume.