Bitcoin Price Drops by 338 What is the Cause
Bitcoin’s price has recently dropped by 3.38%, settling at $60,780, causing its market capitalization to fall to $1.19 trillion. This decrease follows a period of remarkable market activity, including a $13.62 million outflow from spot Bitcoin ETFs and the sale of 1,500 BTC by Germany on Monday, totaling 2,700 BTC sold since June.
Bitcoin’s recent decline resulted in its price falling to $60,780, representing a 3.38% decrease in value over the past day. The cryptocurrency experienced a trading range between $60,584.34 and $63,151.44, leading to a dip in its market cap to $1.19 trillion.
Market dominance also saw a slight decrease, falling by 0.46% to 53.18%. Several factors contributed to this decline, including outflows from spot Bitcoin ETFs.
On Tuesday, 11 U.S. spot Bitcoin exchange-traded funds saw total daily net outflows of $13.62 million, marking a return to negative flows after five consecutive days of inflows. 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 seen in March 2024.
According to Whale Alert, a large holder or institution transferred 1,800 BTC, valued at $114 million, to Binance, causing Bitcoin’s price to drop from $63,800 to $62,900. This entity has been notably active, having previously withdrawn 6,725 BTC, equivalent to $437 million, from Binance and OKX.
The German government has also been liquidating its Bitcoin holdings. On Monday, July 1, it moved 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 reached over 2,700 BTC.
In the past 72 hours, Bitcoin miners have sold over 2,300 BTC, valued at about $145 million. This increased selling pressure follows the fourth Halving event, which reduced block rewards from 6.25 BTC to 3.125 BTC, leading miners to sell to limit their losses.
Despite the recent drop, there are optimistic predictions for Bitcoin’s future. Geoffrey Kendrick, Standard Chartered Bank’s head of forex and digital assets research, predicts that Bitcoin could hit its all-time high in August, followed by a rise to $100,000 by the time of the U.S. presidential election in November. As of now, Bitcoin is trading at $60,760, reflecting a 3.51% decrease in the past 24 hours, with a market cap of $1.19 trillion.