The price of Bitcoin (BTC) has seen a downtrend in the lst few days, causing it to lose a significant percentage of the gain that it accrued recently.
New Weekly Low for Bitcoin Price
According to data from CoinMarketCap, Bitcoin price is trading at $65,423.17 with a 3.1% drop within the last 24 hours. This level is the lowest that the coin has seen in more than a week.
Unfortunately, the drop prompted a flurry of crypto long position liquidations that topped more than $100 million in an hour and over $150 million over the past day. Several factors with a compounded effect are contributing to the Bitcoin price slump at the moment.
It was discovered that some whales are dumping their Bitcoin holding. Precisely, one Bitcoin whale transferred 15,975 units of the flagship cryptocurrency on Friday. The coins were allegedly moved in a single transaction to digital asset exchange Binance. This huge whale dump signals a bearish sentiment and possibly contributed to the slump the coin is recording.
There is also the case low mining revenue which recently began after the Bitcoin halving event that held in April. Ali Martinez on X stated that the mining cost for Bitcoin grew significantly right after the halving. Currently, it cost an average of $77,000 to mine a single $BTC today.
“This spike in expenses has led to a wave of capitulation among #BTC miners in the past month,” Ali mentioned.
With this situation, miners’ revenue fell through to $35,000 after climbing to $78,000. This 55% drop could have triggered the selling pressure that Bitcoin is also experiencing. Bitcoin hashrate is also showing signs of a decline as more resources are now required to mine a block. In all, the a surge in over-the-counter (OTC) sales of Bitcoin cannot be discounted in the current price effect.
According to Deribit, about 97,782 BTC options of notional value worth $6.55 billion are set to expire by June 28. With a put-call ratio of 0.49 and the max pain point at $55,000, Bitcoin price may be staying under selling pressure for long while.
Spot Bitcoin ETF Demand to Push Bitcoin Forward
The market outlook of the coin could also go the other of a bull run in a major twist.
Notably, Spot Bitcoin ETF demand could influence Bitcoin price to head towards the positive predictions that has been made in its favor recently. Bitcoin proponent and market trader PlanB thinks Bitcoin price is on track to close this year at $100,000 with a $500,000 target by 2025.
Galaxy Digital’s CEO Mike Novogratz also projected that the price of Bitcoin might hit $100,000 by the end of the year lauding improved regulations. The next few weeks would determine which BTC direction Bitcoin price go especially if current drawdown is extended.
Read More: Ripple CLO Criticizes Gensler’s Use of “Crypto Asset Securities”
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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