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Why is the price of Bitcoin (BTC) dropping rapidly today?
The price of Bitcoin (BTC) has been trending down over the past few days, causing it to lose a significant percentage of its recent gains.
New weekly low for the Bitcoin price
According to data from CoinMarketCap, the price of Bitcoin traded at $65,423.17 with a decline of 3.1% in the last 24 hours. This level is the lowest the coin has seen in more than a week.
Unfortunately, the drop prompted a flurry of liquidations of long cryptocurrency positions that surpassed $100 million in an hour and over $150 million in the past day. At the moment, several factors with a combined effect are contributing to the collapse of the price of Bitcoin.
Some whales have been found to be dumping their Bitcoin holdings. On Friday, a Bitcoin whale transferred precisely 15,975 units of the flagship cryptocurrency. The coins would be moved in a single transaction on digital asset exchange Binance. This huge whale dump signals bearish sentiment and likely contributed to the collapse the currency is experiencing.
There is also the case of the low mining revenue that began recently after the Bitcoin halving event in April. Ali Martinez on X said that the cost of mining Bitcoin increased significantly immediately after the halving. Mining a single $BTC currently costs an average of $77,000 today.
“This cost increase has led to a wave of capitulation among #BTC miners over the past month,” Ali said.
With this situation, miners’ income it fell to $35,000 after rising to $78,000. This 55% drop may have triggered the selling pressure that Bitcoin is also experiencing. Bitcoin’s hashrate is also showing signs of decline as more resources are now required to mine a block. Overall, the increase in over-the-counter (OTC) sales of Bitcoin cannot be discounted in the current price effect.
According to Deribit, approximately 97,782 BTC options with notional value worth $6.55 billion will expire by June 28. With a put-call ratio of 0.49 and a high critical point at $55,000, Bitcoin price could remain under selling pressure for a long time.
Demand for Spot Bitcoin ETFs will push Bitcoin forward
The coin market outlook could also turn out differently from a bull run with a major breakthrough.
In particular, Spot Bitcoin ETF demand could influence the price of Bitcoin to head towards the positive predictions that have been made recently in its favor. Bitcoin supporter and market trader Plan B believes the price of Bitcoin is on track to close this year at $100,000 with a target of $500,000 by 2025.
CEO of Galaxy Digital Mike Novogratz he also predicted that the price of Bitcoin could reach $100,000 by the end of the year, praising the improved regulations. The next few weeks will determine which direction BTC price will take, especially if the current drawdown is extended.
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