Bitcoin Struggles. For the first time in more than a month, on June 21, Bitcoin’s price (BTC) of $64,247 fell below $64,000. Bitcoin fell from its starting price of $64,840 to its intra-day low of $63,451, according to data from Markets Pro and TradingView.
As a result of the enthusiasm surrounding the potential approval of a spot Ether (ETH) exchange-traded fund (ETF), the price of Bitcoin surged from a low of $61,299 to a swing high of $71,980 on May 21, marking the last time the price of Bitcoin fell below $64,000.
The market cap leader in cryptocurrencies was down 3.54% in the last 24 hours, trading at $63,552 when this article was published. While Ether ETH $3,489 fell 2.25% to $3,475, the overall crypto market cap fell 3.24% to $2.33 trillion during the same time frame.
Bleeding Spot Bitcoin ETFs Weigh on BTC Price
Investors have been pulling their money out of spot Bitcoin ETFs for days, indicating a risk-off mentality among investors. Withdrawals from U.S.-based spot Bitcoin ETFs continued for a fifth day on June 19, pushing the week-to-date total to $900 million. Since the end of April, this is the peak outflow activity.
Approximately $140 million was lost by the ten listed ETFs on June 20, according to data from the crypto research portal SoSoValue. Outflows totaling $53.1 million were recorded by Grayscale’s GBTC, the most actively traded cryptocurrency since its conversion to an ETF on Jan. 10. Fidelity’s FBTC followed closely after with $51.1 million in outflows. VanEck’s ETF recorded net outflows of $4 million, while Invesco and Galaxy Digital’s ETFs witnessed net outflows of $2 million.
Only BlackRock’s IBIT, the largest exchange-traded fund (ETF) in terms of assets under management, saw net inflows totaling $1.5 million. No monies were withdrawn from other ARK Invest, Valkyrie, WisdomTree, Franklin Templeton, or Hashdex accounts. Spot Bitcoin Struggles.ETF trading volume dropped to $1.16B on June 20 from $1.7B the previous day. In observance of a public holiday, the market was closed on June 19.
Falling Network Activity Backs Bitcoin’s Downside
Decreased demand due to waning network activity is another possible explanation for Bitcoin’s persistently falling price. From 971,789 addresses on April 4 to 632,620 addresses on June 20, according to data from Glassnode, the number of daily active Bitcoin addresses has decreased. Over the last three months, this represents a reduction of 35%.
Famous analyst Ali Martinez also noted a decline in Bitcoin blockchain activity. He posted a Glassnode chart on the X social network on June 21st that showed that the volume ofBitcoin Struggles. exchange inflows has declined for the past three months. “The decline in Bitcoin’s onchain activity related to exchanges is a sign of waning investor interest in the cryptocurrency and lower network utilization.” When on-chain activity drops, fewer people are interested in buying Bitcoin, which drives down its price.
Bitcoin’s Price Loses Key Support Levels
From a technical perspective, Bitcoin’s price decrease today is part of a more significant correction that started after it was rejected from the $72,000 resistance level on June 7. Key support levels, such as the 50-day and 10-day exponential moving averages (EMAs), which are at $66,724 and $66,594, respectively, have been lost by BTC during this decline.
The 200-day exponential moving average ($64,294) was Bitcoin’s final barrier to entry. At the time of writing, BTC’s price was breaching the support given by the 200-day EMA, accompanied by a 15% jump in daily trading volumes, signifying the activation of the continuation of the sell-off. Regarding the downside, the low swing levels of $60,000 and $56,500 should be closely monitored.
Also Read: Fears of $60K as Bitcoin Falls Below Short-term Holder Realized Price
