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Why the price of Bitcoin is dropping dramatically today
Bitcoin (BTC) price has fallen sharply over the past hour, falling below the $70,000 support level. The sharp decline can be linked to several factors, including robust US employment data and a decline in employment GameStop
stock price, which had a negative impact on the mood in the cryptocurrency market.
This dramatic decrease has led to the liquidation of over $300 million from the cryptocurrency market in the last hour.
Bitcoin price market indicators
As a result, the current crisis can be seen That of Bitcoin market indicators. The Bitcoin Dominance metric, which indicates the percentage of the total cryptocurrency market capitalization that belongs to Bitcoin, increased by 1.04% to 53.69%. This indicates that although Bitcoin is going through a retracement, it is still performing much better than the rest of the cryptocurrencies.
Additionally, Bitcoin’s foreign exchange reserve fell 0.06% to 1.81 million, suggesting that investors may be withdrawing Bitcoin into personal wallets for storage and not selling on exchanges.
The Crypto Fear & Greed Index, which shows market sentiment, fell by 1.28% to 77, meaning that market sentiment is still in the “Greed” territory. However, extreme greed is usually the last phase of a bull market and is evident in the current situation.
Source: Coinglass
Additionally, CME BTC futures Open Interest fell 2.19% to $11.12 billion, indicating that traders are closing their positions, which could be due to lower confidence in the market or a period of consolidation after recent price volatility.
Positive employment data in the United States
The recent US occupation The situation report also put negative pressure on the Bitcoin price as it revealed that 272,000 jobs were added in May, much higher than the 185,000 jobs expected.
As a result, the increase in employment has reduced the chances of an interest rate cut by the Federal Reserve in the near future, which has led to a rise in interest rates and the US dollar.
This shift in the economic landscape has put negative pressure on risky assets, including cryptocurrencies.
GameStop Stocks and Cryptocurrency Market Sentiment
At the same time, a significant decline in GameStop shares (GME) has also negatively affected sentiment in the cryptocurrency market. According to Coingape, the situation was precipitated by Roaring Kitty, a trader who has a large following on social media platforms, through a live session on YouTube.
As expected, Roaring Kitty didn’t have much to say and this disappointed investors. GameStop shares fell 40% on the session, and meme coin GME fell 50%. This type of bearish trend also affected other meme cryptocurrencies such as DOGE where the price fell by 8%, SHIB which fell by 10% and PEPE by 15%.
Despite the recent sell-off, Spot Bitcoin ETF have recorded the longest accumulation streak since their launch. Over the course of 18 consecutive days, these ETFs accumulated more than 56,000 Bitcoin, nearly seven times the amount mined during that period. However, this was not enough to support a rally in the price of Bitcoin.
Source: CoinMarketCap
At the time of writing, the price of Bitcoin was trading at $69,000, down 2.5% over the past 24 hours. At the same time, BTC’s market capitalization fell by 2.52% to $1,362,313,410,346, while 24-hour trading volume increased by 48% to $36,296,396,359.
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