Bitcoin Price Plunges Today Unveiling the Top 3 Reasons

Is the Crypto Market Feeling Anxious Again?
Bitcoin’s value has recently fallen below $65,000 due to the German government selling off their stash and Bitcoin ETFs experiencing outflows. While major players like MicroStrategy are taking advantage of the dip to buy more Bitcoin, overall market sentiment remains cautious as we reach the end of the first half of the year, bringing with it significant volatility.
Traders are currently feeling a mix of fear and disinterest as Bitcoin fluctuates between $65,000 and $66,000, according to Santiment. However, historical trends suggest that when traders sell and institutional investors buy in, Bitcoin tends to bounce back, rewarding those who are patient.
The majority of traders are currently fearful or disinterested in Bitcoin as prices hover between $65K and $66K. This prolonged level of fear, uncertainty, and doubt (FUD) is uncommon, as traders continue to give up. Generally, when BTC traders become fatigued and whales accumulate, there are bounces that reward those who are patient.
pic.twitter.com/WMy3lbdjEB
— Santiment (@santimentfeed)
June 20, 2024
Why Are the Bitcoin Bears Winning?
German Government Sell-Off
The recent drop in Bitcoin’s price can largely be attributed to the actions of the German government. Reports from Arkham Intelligence suggest that Germany has sold approximately $65 million worth of Bitcoin on platforms like Coinbase, following an earlier transfer of $130 million to exchanges such as Kraken and Bitstamp.
UPDATE: German Government Still Selling BTC > $195M So Far.
In the past 2 hours, the German Government sent $65M in BTC to 2 likely exchange deposits including Coinbase.
The German Government moved $600M BTC yesterday, sending $130M BTC to 4 likely exchange deposits including…
pic.twitter.com/in2urlDBE0
— Arkham (@ArkhamIntel)
June 20, 2024
These transactions involve Bitcoin that was seized from the piracy site Movie2k.to in 2013, and Germany still holds a significant $3.05 billion in BTC.
ETF Outflows
At the same time, Bitcoin ETFs are experiencing substantial outflows, which adds to the downward pressure on prices. This lack of confidence among investors further fuels the prevailing bearish sentiment in the market.
Nvidia’s Impact on BTC
In contrast to Bitcoin’s struggle, the US stock market, driven primarily by tech giants like Nvidia, is performing well. Nvidia’s market capitalization has surged to $3.4 trillion, surpassing France’s GDP and the entire crypto market combined. This strength in the stock market, along with speculation about the US Federal Reserve potentially lowering interest rates before November, could provide some hope for a recovery in the crypto market.
It’s Time for Some Strategy!
Despite the bearish trends, large entities like MicroStrategy are taking advantage of the lower prices, indicating their belief in a future bull run. However, the broader market, including traders and institutions, remains pessimistic for the time being.
After being rejected at $72,000 earlier this month,
Bitcoin
has corrected by over 10% from its peak in June. With critical support levels breached, Bitcoin now faces the risk of further decline to $60,000. Analysts, including Willy Woo, emphasize that Bitcoin’s recovery largely depends on weaker miners exiting the market and the subsequent stabilization of the hash rate.
Also Read:
Here’s a List of Top Altcoins That Will Lead the ‘Recovery Rally’
Are you buying the dip, or are you waiting for prices to drop further? Share your thoughts.
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Price Analysis