Cryptocurrencies

Bitcoin (BTC) fell below $64,000 for the first time in over

Bitcoin (BTC) fell below $64,000 for the first time in over a month on June 21. Data from Cointelegraph Markets Pro and TradingView shows that the price of Bitcoin fell from an opening point at $64,840 to an intraday low of $63,451.

The last time Bitcoin price traded below $64,000 was on May 15, when it rose from a low of $61,299 to a high of $71,980 on May 21, driven by excitement over the immediate approval of exchange-traded funds (ETFs) for Ethereum (ETH). .

At press time, the largest cryptocurrency by market capitalization was trading at $63,552, down 3.54% over the past 24 hours.

BTC/USD daily chart. source: Trading View

The broader cryptocurrency market cap also fell 3.24% over the same period to $2.33 trillion, while Ethereum (ETH) fell 2.25% to $3. $475.

Let’s take a look at some of the reasons why Bitcoin is leading the market in the correction.

Bitcoin ETFs Affect BTC Price

Investor risk aversion is evident in Bitcoin exchange-traded funds, where investors withdraw their capital over several days.

On June 19, U.S. Bitcoin ETFs recorded outflows for the fifth consecutive day, bringing total withdrawals for the week to $900 million. This is the highest exit activity since late April.

According to data from cryptocurrency research platform SoSoValue, the 10 listed ETFs lost around $140 million on June 20.

Total net flow of Bitcoin ETFs. Source: Soso Value

Grayscale’s GBTC, which has seen mostly outflows since its conversion to an ETF on January 10, led the outflows with $53.1 million, followed by Fidelity’s FBTC with $51.1 million. VanEck’s ETF saw net outflows of $4 million, while Invesco and Galaxy Digital’s funds saw net outflows of $2 million.

BlackRock’s IBIT fund, the largest ETF by assets held, was the only product to reach $1.5 million in net inflows. Other funds from ARK Invest, Valkyrie, Franklin Templeton, WisdomTree and Hashdex saw no inflows.

Total trading volume for spot Bitcoin ETFs on June 20 was $1.16 billion, up from $1.7 billion on June 18. The market was closed on June 19 for a public holiday.

Decreasing Network Activity Supports Bitcoin Decline

Another reason why the price of Bitcoin continues to fall is the decrease in demand due to decreased network activity.

Data from Glassnode reveals that daily active addresses on the Bitcoin network increased from 971,789 addresses on April 4 to 632,620 addresses on June 20. This represents a 35% drop over the last 90 days.

Number of active Bitcoin addresses. Source: Glassnode

Popular analyst Ali Martinez also highlighted the decline in activity on the Bitcoin blockchain. In a June 21 post on social network

“Bitcoin is experiencing a decline in exchange-related on-chain activity, indicating a decrease in investor interest in Bitcoin and a decrease in network usage.”

Bitcoin exchange flow volume dynamics. source: Ali Martinez

A decrease in on-chain activity indicates a drop in demand for BTC within the ecosystem, which affects its price.

Bitcoin Price Loses Key Support Levels

From a technical perspective, Bitcoin’s current price decline is part of a broader correction that began after it rejected the $72,000 resistance level on June 7. During this pullback, Bitcoin lost key support levels, including the 50-day and 10-day exponential levels. The moving averages (EMA), which are currently at $66,724 and $66,594 respectively.

The 200-day moving average ($64,294) was Bitcoin’s last line of defense.

BTC/USD daily chart. source: Trading View

At press time, Bitcoin price broke above the support provided by the 200-day moving average, accompanied by a 15% increase in daily trading volumes, indicating continued selling.

On the other hand, the key levels to watch are at $60,000 and the lowest at $56,500.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research before making a decision.

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