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Why is the price of Bitcoin falling today?
Bitcoin price pulled back today after reports of Mt. Gox’s massive BTC move to an unknown wallet address triggered a broader market sell-off. Mount Gox he later denied allegations that he sold $10 billion worth of Bitcoin and Bitcoin Cash reserves to make repayments to creditors. However, the cryptocurrency market has failed to recover despite a denial from a former executive.
Why the price of Bitcoin is falling today
Mark Karpeles, former CEO of Mt. Gox, said: “Everything is fine with MtGox. The trustee is moving the coins to a different wallet in preparation for the distribution which will likely take place this year, there is no imminent sale of bitcoin.”
However, large amounts of Bitcoin were moved causing a sharp decline in BTC held by the 1K-10K and 10K-1ooK BTC wallet addresses. This caused sentiment to remain low as traders considered other factors.
Bitcoin still holds steady above the key support level at $66,000 but has headwinds such as US PCE Inflation Data AND cryptocurrency market deadline on May 31st are probably the factors that traders have considered to stay away from the market.
CoinGape he reported it 68,383 BTC Options of a notional value of $4.66 billion will expire, with a put-call ratio of 0.57. The maximum critical point is $65,000, which indicates high chances of Bitcoin selling off after days of low trading volumes. Implied Volatility (IV) witnesses significant declines across all major terms, meaning that volatile price movements are likely to cause the BTC price to decline further.
Crypto Liquidations
According to data from CoinGlass, the cryptocurrency market has seen liquidation of $170 million in the last 24 hours. Ethereum (ETH) has surpassed Bitcoin in liquidation, with BTC recording $25 million in liquidation of long positions. The largest liquidation order occurred on cryptocurrency exchange Binance when someone traded ETHUSDT worth $4.92 million.
BTC price has fallen more than 3% in the past 24 hours, with the price currently trading near $68,243. The 24-hour low and high are $67,227 and $70,479, respectively. Trading volumes increase by more than 25%, indicating interest among traders but caution.
THE US dollar index (DXY) rose above 104.54 after the recent decline in the dollar index. Meanwhile, the 10-year US Treasury bond yield it also rose to 4.54% after poor results at the 5- and 2-year auctions triggered a sell-off. Also, the president of the Minneapolis Federal Reserve Neel Kashkari stressed that the current policy direction is restrictive, but stressed that officials have not entirely ruled out further rate increases.
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