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Why is the price of Bitcoin falling today? BTC price drops to $64,000
The Cryptocurrency Market Is Nervous: Again?
The price of Bitcoin recently fell below $65,000, influenced by a fire sale by the German government and outflows from it Bitcoin ETFs. While major players like MicroStrategy continue to buy on dips, overall market sentiment remains cautious as the first half of the year concludes, bringing significant volatility.
According to Santiment, traders are feeling a mix of fear and disinterest as Bitcoin fluctuates between $65,000 and $66,000. However, historical trends suggest that when traders sell and institutional investors buy, Bitcoin tends to recover, rewarding patient investors.
🫣 The crowd is mostly fearful or disinterested towards Bitcoin as the prices range between $65,000 and $66,000. This extended level of FUD is rare, as traders continue to capitulate. BTC trader fatigue, combined with whale accumulation, generally leads to patient-rewarding bounces. pic.twitter.com/WMy3lbdjEB
— Santiment (@santimentfeed) June 20, 2024
Why do Bitcoin bears win?
German government fire sale
The recent decline in the price of Bitcoin can largely be attributed to the actions of the German government. Reports from Arkham Intelligence indicate that Germany sold around $65 million worth of Bitcoin on platforms like Coinbase, following an earlier transfer of $130 million to exchanges like Kraken and Bitstamp.
UPDATE: German government continues to sell BTC >$195 million so far.
In the last 2 hours, the German government sent $65 million in BTC to 2 probable exchange vaults, including Coinbase.
The German government moved $600 million worth of BTC yesterday, sending $130 million worth of BTC to 4 likely exchange vaults, including… pic.twitter.com/in2urlDBE0
—Arkham (@ArkhamIntel) June 20, 2024
These moves relate to the seizure of Bitcoin from piracy site Movie2k.to in 2013, with Germany still holding a substantial sum of $3.05 billion in BTC.
ETF outflows
At the same time, Bitcoin ETFs have experienced significant outflows, increasing downward pressure on prices. This lack of confidence among investors has further fueled the bearish sentiment prevailing in the market.
Nvidia’s impact on BTC
In contrast to Bitcoin’s struggle, the US stock market, led in particular by tech giants like Nvidia, is doing well. Nvidia’s market capitalization rose to $3.4 trillion, surpassing the French GDP and the entire cryptocurrency market. This stock market strength, coupled with speculation about a potential rate cut by the U.S. Federal Reserve before November, could provide some hope for a cryptocurrency market recovery.
It’s time to adopt some strategies!
Despite bearish trends, large entities like MicroStrategy are capitalizing on lower prices, indicating confidence in a future bull run. However, the broader market, including traders and institutions, remains pessimistic for now.
Following a $72,000 rejection earlier this month, Bitcoin it corrected by more than 10% from its June peak. With the breach of critical support levels, Bitcoin now faces the risk of a further decline to $60,000. Analysts, including Willy Woo, point out that Bitcoin’s recovery depends significantly on the exit of weaker miners from the market and the subsequent stabilization of the hash rate.
Read also: Here is a list of the best altcoins that will lead the “Recovery Rally”
Are you buying the dip or waiting for a further dip? Share your thoughts.