News
Three main reasons why Bitcoin (BTC) is below $70,000
Arman Shirinyan
Bitcoin failed to regain share above $70,000, which was somewhat expected
Continue reading U.TODAY
Google News
Bitcoin failed to regain the position above $70,000, but what are the main reasons behind this? The latest data on liquidation clusters, ETF inflows and market evidence may tell us answers.
First, the liquidation heat map data shows significant sell-offs that contributed to the decline in the price of Bitcoin. The chart shows that the $72,000, $69,000 and $66,000 levels have seen significant clusters of liquidations. These liquidations show strong selling pressure because the price was forced lower by the forced closure of leveraged positions. Bitcoin’s recent price action shows that this trickle-down effect from liquidations often results in a quick and steep decline.
Second, the move away from US ETFs that follow this trend Bitcoin they were very important. After 19 days of inflows, these ETFs saw a net outflow of $64.93 million on Monday. This is notable because it shows that investors are moving away from accumulation and towards taking profits or taking less risk.
Grayscale’s GBTC saw the highest outflow, totaling $40 million, followed by Invesco Galaxy Digital’s BTCO, Valkyrie’s Bitcoin ETF, and Fidelity’s FBTC. The money that was taken Bitcoin ETFs point to declining institutional interest, despite relatively low volume of outflows.
Third, market dynamics show a general decline in enthusiasm. While recent outflows suggest a change, there has been a 19-day streak of net inflows totaling more than $4 billion, bringing the total net inflow for spot Bitcoin ETFs since January to $15 billion.
The overall trend turned negative even though the only funds to record net inflows of $6 million and $8 million respectively were Bitwise’s BITB and BlackRock’s IBIT. This change in sentiment is likely the result of profit-taking following a long period of positive inflows, not just among institutional investors.
About the author
Arman Shirinyan
Arman Shirinyan is a trader, cryptocurrency enthusiast and SMM expert with more than four years of experience.
Arman firmly believes that cryptocurrencies and blockchain will be in constant use in the future. Currently he focuses on news, articles with in-depth analysis of crypto projects and technical analysis of cryptocurrency trading pairs.