Bitcoin’s price fell by 3.38%, settling at $60,780, and its market cap dropped to $1.19 trillion. Spot Bitcoin ETFs saw $13.62 million in outflows, breaking a streak of positive inflows. Additionally, Germany sold 1,500 BTC on Monday, bringing the total amount of Bitcoin liquidated since June to 2,700 BTC.
Bitcoin’s recent price surge has stalled as it dropped by 3.38% in the past day, now sitting at $60,780. During this period, the price ranged between $60,584.34 and $63,151.44. This decline has caused Bitcoin’s market cap to fall to $1.19 trillion, and its market dominance has decreased slightly by 0.46% to 53.18%. Here’s why Bitcoin’s price is falling again.
Factors Contributing to Bitcoin’s Price Decline
On Tuesday, 11 U.S. spot Bitcoin exchange-traded funds (ETFs) saw a total daily net outflow of $13.62 million, ending a five-day streak of inflows. Grayscale’s GBTC experienced net outflows of $32.38 million, while Bitwise’s BITB saw a loss of $6.76 million.
The overall trading volume for these 11 spot Bitcoin ETF funds was under $1 billion, significantly lower than the daily volume of around $8 to $10 billion observed in March 2024.
In addition, Whale Alert reported that a large holder or institution transferred 1,800 BTC, valued at $114 million, to Binance, which caused Bitcoin’s price to drop from $63,800 to $62,900. This entity has been notably active, having previously withdrawn 6,725 BTC, worth $437 million, from Binance and OKX. Over the past five days, it transferred 3,481 BTC, valued at $217 million, back to Binance at an average price of $62,300. Currently, the whale still holds 7,867 BTC, worth approximately $494 million.
German Government and Miners Contribute to Bitcoin’s Price Pressure
The German government has been actively liquidating its Bitcoin holdings. On Monday, July 1, it transferred over 1,500 BTC, with 400 BTC, worth over $25 million, sent to exchanges like Coinbase, Kraken, and Bitstamp. Since June, the total BTC selloff by the German government has exceeded 2,700 BTC.
In addition, Bitcoin miners have sold over 2,300 BTC, valued at approximately $145 million, in the past 72 hours. This increased selling pressure follows the fourth Halving event, which reduced block rewards from 6.25 BTC to 3.125 BTC. To mitigate their losses from the decreased rewards, miners have been selling more of their holdings.
Optimistic Predictions for Bitcoin Despite Recent Drop
Despite the recent drop, there are positive forecasts for Bitcoin’s future. Geoffrey Kendrick, the head of forex and digital assets research at Standard Chartered Bank, predicts that Bitcoin could reach its all-time high in August and potentially rise to $100,000 by the time of the U.S. presidential election in November.
Kendrick views Donald Trump as “bitcoin-positive,” suggesting that under his leadership, both regulation and mining would be more favorable for Bitcoin.
Currently, Bitcoin is trading at $60,760, reflecting a 3.51% decrease over the past 24 hours. Despite this drop, trading volume has surged to $22.5 billion, with a market cap of $1.19 trillion.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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