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Bitcoin price hits one-month low amid outflows of $600 million
Bitcoin, the leading cryptocurrency, recently suffered a decline, hitting its lowest point in a month due to significant withdrawals from investments in digital assets. On June 18, 2024, BTC fell 2.1%, reaching levels last seen in mid-May before stabilizing.
What is causing the recession? Here’s an in-depth analysis.
Investors are retreating amid economic uncertainty
Recent data from CoinShares International shows a substantial $600 million withdrawal from digital asset products last week, marking the highest outflow since March. This trend comes amid ongoing inflation concerns, leading traders to scale back expectations for the Federal Reserve’s interest rate cuts this year. Such caution represents a significant challenge for speculative assets such as cryptocurrencies.
Performance Analysis: Stocks vs. Bonds Bitcoin
In a notable change from the previous quarter, where Bitcoin outperformed stocks and bonds, the current quarter has seen traditional assets take the lead. This change 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 along with reduced flows into ETFs.
What the technicians tell us
The 30-period simple moving average (SMA) for Bitcoin is $68,457, while the 30-period exponential moving average (EMA) is slightly lower at $67,416 – both figures are above the current market price of $65,634.
Bitcoin ETFs they currently hold a total market capitalization of $82.04 billion, with Bitcoin futures at $2.31 billion and Bitcoin Spot ETFs at $79.74 billion. Over the past 24 hours, Bitcoin ETFs recorded $1.38 billion in trading volume, including $160.31 million from Bitcoin Futures and $1.22 billion from Bitcoin Spot ETFs.
Future perspectives
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 remains the subject of intense speculation and scrutiny.
Read also: Top Altcoins to Watch Next Week!
The next chapter in Bitcoin’s history is yet to be written. What role will it have in the future of finance?