Bitcoin (BTC), the most valuable cryptocurrency by market value, fell a lot on Tuesday. This was the norm for the whole cryptocurrency market. The price of Bitcoin dropped below $65,000 for the first time since May 16. This happened because people were worried about the world economy and there was less cash around during the summer.
Ethereum (ETH) dropped 4% to $3,400, which is also a lot of funds. The prices of XRP, Solana (SOL), and Dogecoin (DOGE) all dropped even more. Marko Jurina, CEO of the decentralized exchange Jumper.Exchange, said that traders often sell assets at a discount to take advantage of low prices and avoid losing too much funds or leaving risky positions.
Bitcoin Struggles to Rise
He said that the present situation is caused by a weakening global economy, unresolved geopolitical issues, and less market activity in the summer, all of which make volatility higher. These conditions are likely to last for a few more months, which could cause significant fluctuations in the price of Bitcoin.
Since March 14, when it hit a record high of $73,700, Bitcoin has had a hard time keeping up its speed. Even though it briefly tested the $70,000 level in early June, it hasn’t been able to keep going up. It’s down 4% for the month and 9% for the quarter.The cryptocurrency hit $70,000 in late May, according to data from CryptoQuant.
Since then, buyers have been selling Bitcoin. This trend of selling keeps going, and there isn’t much buying going on. A founder of CryptoQuant named Ki Young Ju pointed out that “whales,” people who have held Bitcoin for a long time, have sold $1.2 billion worth of Bitcoin in the last two weeks, most likely through traders.
ETFs have also had negative net flows, with $460 million leaving them during the same time period. Young Ju warned that brokers might send BTC to exchanges, which could have an effect on the market, if this large amount of sell-side liquidity is not taken up over-the-counter (OTC).
A crypto expert named Ali Martinez said on June 14 that BTC needed to break above $66,250 so it wouldn’t go down to $61,100. Martinez said Bitcoin could drop to $61,000 because it is still having trouble with making progress. Rekt Capital analyst also said that BTC is almost at its first Chicago Mercantile Exchange (CME) gap, which is between $64,000 and $62,500.
It looks like people who are negative about Bitcoin’s price have taken back control. This means that the cryptocurrency will have a hard time in the future. It’s still not clear when this decline will end or how big the retracement might be.
At this writing, one Bitcoin is worth $64,770.
