Bitcoin Price Plunges as Crypto Market Faces Meltdown

Key Points
– Bitcoin price has fallen by 3% in the past 24 hours, sparking concerns of a bear market and aligning with the performance of major stock indexes.
– Outflows from Bitcoin ETFs and miners are contributing to the downward pressure on the price, along with selling by Bitcoin whales.
– If bearish sentiment continues, Bitcoin price could potentially drop to $48,000.
The cryptocurrency market is currently experiencing a wave of pessimism as worries about further declines weigh on investor sentiment.
Bitcoin (BTC) saw a 3 percent decline over the last day, reaching approximately $63,900 during the London session on Friday.
Interestingly, the cryptocurrency market’s movement mirrored that of major stock indexes in Asia and Europe, which also showed losses despite a rise in the global liquidity index. Analysts at JPMorgan, led by Nikolaos Panigirtzoglou, pointed out that the market is gradually turning bearish due to emerging doubts and a lack of supportive narratives.
Decrease in Investor Interest
On-chain data from Glassnode indicates a decline in exchange-related activity for Bitcoin, suggesting a waning investor interest. With cash outflows from US-based spot Bitcoin ETFs and significant selling pressure from miners, the funding rate for BTC has turned negative.
A notable group of sellers has emerged – experienced Bitcoin whales. They have already sold billions in Bitcoin, as revealed by on-chain data showing a massive $1.2 billion worth of Bitcoin dumped by these long-term whales over the past two weeks.
In the last five days alone, US-based spot Bitcoin ETFs have witnessed nearly half a billion dollars in outflows. Additionally, Bitcoin whales have sold over $1.2 billion through various OTC brokers.
Despite the ongoing selling pressure, Johnnie Jacks, co-founder of PaciFi and MoonGate Finance, maintains a positive outlook. He believes that the current whale and ETF sell-offs are relatively minor. Jacks also highlighted the upcoming Bitcoin halving and the growing Ethereum volume in anticipation of spot ETF listings as positive signs for the market.
Midterm Outlook: Bearish
Bitcoin has broken several crucial support levels over the past fortnight, indicating a bearish outlook for the midterm. While a rebound remains possible at any point, the focus now is on maintaining support above $60,000 as the weekly Relative Strength Index (RSI) nears the 50 mark.
If the bearish sentiment persists, many analysts anticipate a potential drop in Bitcoin’s price to around $48,000 before the bulls regain control. This projected decline is viewed as a critical test of Bitcoin’s resilience amidst ongoing market turbulence.
Additionally, read:
Crypto Market Crash: Whales Are Targeting These Three Altcoins
Could this signify the beginning of a crypto winter? Stay tuned for further updates.