Is $62K Bitcoin’s June low? reasons behind the BTC crash
Just now, Bitcoin saw a sharp decline, hitting a new low for the month of $62,607! What’s causing this abrupt decline in price, and where will Bitcoin go from here? We examine the causes of the recent downturn and the predictions made by experts for the future.
Get all the answers you need by diving in.
Why is the price of bitcoin plummeting?
These are the cost-related arguments made by a specialist who was recognized as Wise Advice on the X platform.
𝗛𝘂𝗴𝗲 𝗩𝗼𝗹𝗮𝘁𝗶𝗹𝗶𝘁𝘆 𝗶𝘀 𝗰𝗼𝗺𝗶𝗻𝗴 🚨🚨
If you think the worst is over for #Bitcoin and #crypto, then you need to know this…
𝑩𝒊𝒕𝒄𝒐𝒊𝒏 𝒐𝒑𝒕𝒊𝒐𝒏𝒔 𝒘𝒐𝒓𝒕𝒉 $𝟲.𝟱 𝗯𝗶𝗹𝗹𝗶𝗼𝗻 𝒂𝒓𝒆 𝒈𝒐𝒊𝒏𝒈 𝒕𝒐 𝒆𝒙𝒑𝒊𝒓𝒆 𝒐𝒏 𝑱𝒖𝒏𝒆 28𝒕𝒉.𝘛𝘩𝘦 𝘔𝘢𝘹… pic.twitter.com/jh7riY00fS
— Wise Advice (@wiseadvicesumit) June 25, 2024
Miner Selling Pressure: The substantial sell-off by miners is a primary factor in the recent drop in the price of bitcoin. Miners have sold over 30,000 Bitcoin since the beginning of June 2024, for a total of roughly $2 billion. The majority of this selling has occurred on exchanges, which has increased selling pressure and lowered the price of bitcoin.
FED Liquidity Reversal: The Federal Reserve’s (Fed) control over liquidity levels has a significant impact on the price of bitcoin. The Fed’s liquidity measures have deteriorated over the last two weeks, which has had an immediate impact on the price of Bitcoin. High-risk assets like Bitcoin are usually negatively impacted when the Fed reduces liquidity.
Lack of New Inflows: The steady withdrawal of Bitcoin ETFs over the last week has been another factor in the price drop. The lack of fresh investments has increased selling pressure, which has weakened the market support for Bitcoin even more.
Decline in the IFP Indicator: There has been a downward trend in the Inter-Exchange Flow Pulse (IFP) indicator, which monitors the flow of Bitcoin from spot exchanges to derivative exchanges. This adds to the downward pressure on the price of Bitcoin by indicating a growing bearish sentiment in the market.
It’s the June trend once more!
Historically, June has been the month when Bitcoin typically experiences its annual low. In June 2020, Bitcoin fell to $9,000; in June 2021, it reached $29,500; in June 2022, it reached $19,000; and in June 2023, it reached its lowest point of $24,700.
These trends have continued in the recent past. Analysts predict that Bitcoin may stabilize between $59,000 and $60,000 this month, possibly indicating a rebound, based on this trend.
In early June 2024, the price of Bitcoin was approximately $67,713. On June 5th, it rose momentarily above $71,103 before starting to decline. On the daily BTC/USD chart, this decline has been indicated by a number of large red candlesticks scattered with smaller green ones.
With a 5.2% drop in the last week and a 2.6% decline in the last day, Bitcoin has dropped 8.8% overall over the last 30 days.
Ultimately, substantial miner sell-offs, modifications to Federal Reserve liquidity policies, steady withdrawals from Bitcoin ETFs, and a bearish market sentiment indicated by the IFP indicator are all factors contributing to the recent decline in the price of Bitcoin.
Notwithstanding the difficulties at hand, past data indicates that June may prove to be a critical month in which Bitcoin sets a new standard prior to a possible rebound.
What’s next for Bitcoin?
Despite the current challenges, some experts remain optimistic about the future of Bitcoin, citing its potential long-term growth prospects.
Others, however, warn of further declines and urge caution among investors.
As we wait to see how the market evolves, it’s essential to stay informed and assess your investment strategy accordingly.
Moreover, the current price decline of Bitcoin raises questions about its future direction, with some experts predicting a potential rebound while others warn of further losses. Only time will reveal the true nature of this market movement in the dynamic and unpredictable realm of cryptocurrencies.
