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Why is the price of Bitcoin (BTC) falling rapidly today?
The price of Bitcoin (BTC) has been trending lower over the past few days, causing it to lose a significant percentage of the gain it has accumulated recently.
New weekly low for Bitcoin price
According to data from CoinMarketCap, the price of Bitcoin is trading at US$65,423.17, down 3.1% in the last 24 hours. This level is the lowest the coin has reached in over a week.
Unfortunately, the drop triggered a flurry of liquidations of long cryptocurrency positions that surpassed more than $100 million in one hour and more than $150 million in the last day. Several factors with an aggravated effect are contributing to the decline in the price of Bitcoin at the moment.
It has been discovered that some whales are dumping their Bitcoins. Precisely, a Bitcoin whale transferred 15,975 units of the leading cryptocurrency on Friday. The coins were reportedly moved in a single transaction to the digital asset exchange Binance. This massive whale deposit signals bearish sentiment and has possibly contributed to the drop the coin is seeing.
There is also the case of low mining revenue that started recently after the Bitcoin halving event that took place in April. Ali Martinez at X stated that the cost of mining Bitcoin grew significantly shortly after the halving. Currently, it costs an average of $77,000 to mine a single BTC.
“This increase in expenses led to a wave of capitulation among #BTC miners last month,” said Ali.
With this situation, miners’ recipe fell to $35,000 after rising to $78,000. This 55% drop could have triggered the selling pressure that Bitcoin is also facing. Bitcoin’s hashrate is also showing signs of decline as more resources are now required to mine a block. All in all, the increase in over-the-counter (OTC) Bitcoin sales cannot be discounted from the current price effect.
According to Deribit, around 97,782 BTC options with a notional value worth $6.55 billion are set to expire by June 28. With a put-call ratio of 0.49 and the maximum pain point at $55,000, Bitcoin price could remain under selling pressure for a long time.
Spot Bitcoin ETF Demand to Drive Bitcoin Forward
The currency’s market outlook could also evolve into a major turnaround.
Notably, Spot Bitcoin ETF demand could influence the price of Bitcoin to move towards the positive predictions that have been made in its favor recently. Bitcoin proponent 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 also projected that the price of Bitcoin could reach $100,000 by the end of the year, praising improved regulations. The next few weeks will determine the direction of BTC’s Bitcoin price, especially if the current drawdown is extended.
See more information: Ripple CLO criticizes Gensler’s use of “crypto asset securities”