Despite the earlier attempt to end the month on a bullish note, Bitcoin (BTC) price is fast giving away its accrued gains amid a heated market. At the time of writing, Bitcoin is trading at a 1.64% drop in 24 hours to $67,328.02. This comes on the back of the 0.99% slip in the combined crypto market cap.
Bitcoin Price and the Bearish Market Movers
The price of Bitcoin stabilized following the release of the Federal Reserve’s preferred inflation gauge, the Personal Consumption Expenditure (PCE) which rose by 0.2% in April as expected. Shortly after the market welcomed this report, the news of the hack of DMM Bitcoin, a Japanese crypto trading platform visibly tilted the market balance.
Hacking events like this have a generally bearish impact on the market. With more than $305 million siphoned from the trading platform, many investors are beginning to relive the experiences of Mt.Gox and Coincheck. These two trading platforms had a larger loss profile compared to DMM Bitcoin with one unifying trend, all of them were of Japanese origin.
While it remains too soon to speculate on the potential impact on the broader market, investors are acting on a knee jerk impulse so they won’t get caught up in the any erratic bearish twist.
The Bitcoin price slip also stems from the more than $8 billion in BTC and Ethereum options market today. This comprises of 69,000 Bitcoin options worth $4.7 billion and 920,000 Ethereum options with a valuation of $3.5 billion. This is a significant dilution which ushered in a higher than usual leverage into the market.
With Deribit data showing more long positions for Bitcoin price, it appears safe to assume that this current slip off might soon clear off.
Bitcoin Has Growth Immunity
Despite the unexpected trend in the market, Bitcoin price has a major growth immunity to watch out for. With spot Bitcoin ETF products from top issuers like BlackRock and Fidelity Investments, the institutional demand base remains intact.
In recent times, Hong Kong and the United Kingdom have also joined the United States, Canada and Brazil among other countries with spot Bitcoin ETF and other related products. The asset is arguably going mainstream and this may serve as a primary basis for price recovery in the short term.
Drawing on the potential of Bitcoin price to break out, legendary trader Peter Brandt predicts an early cup-and-handle formation for the coin. The cup part has formed completely and the handle pattern has yet to form. Peter Brandt hints at a breakout upcoming in BTC price, with the confirmation happening after a downtrend breakout.
Read More: NYSE President Lauds Bitcoin ETFs and Liquidity It Brought to Markets
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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