Yet again, Bitcoin price is stuck in the mud. Since June 5th, Bitcoin has plunged from $71,083 to $60,600, marking a sharp decline of over 16%. This steep drop has left many in the crypto community questioning the reasons behind Bitcoin’s persistent struggles and its inability to regain momentum.
What’s holding Bitcoin back? And is a recovery even possible? Dive deeper to find out why experts are worried and what it means for the future of crypto.
ETF Outflows Intensify Market Pressure
According to Lookonchain, a leading blockchain analytics platform, outflows from Bitcoin ETFs have continued to exert pressure on the market. On June 28, nine ETFs saw a combined outflow of 4,428 Bitcoin, valued at approximately $271 million. Grayscale (GBTC) led these outflows with 3,375 BTC, followed by ARK Investment with 720 BTC. This substantial selling pressure has undoubtedly affected Bitcoin’s price stability.
Despite the heavy outflows, there has been a net inflow of 596 Bitcoin into ETFs, worth around $36.49 million. This mixed activity indicates that while some ETFs are offloading their Bitcoin holdings, others are still buying, reflecting a divided sentiment in the market.
Cooling PCE Data
Bitcoin’s price has remained relatively stable despite recent U.S. macroeconomic figures. The core Personal Consumption Expenditures (PCE) price index, a key inflation measure used by the Federal Reserve, rose at an annual rate of 2.6% in May, the lowest increase since March 2021. Monthly, the core PCE saw a modest rise of only 0.1%, the slowest since November 2023.
However, Bitcoin continues to hover around the $60,000 mark, showing little reaction to these low inflation numbers.
Government Actions Stir Investor Concerns
Recent moves by the U.S. government have added to market uncertainties. A government-associated address transferred 11.84 BTC, worth approximately $726,000, to a new address. While this is a relatively small transaction, it has sparked speculation about potential larger moves by the government, causing unease among investors who fear possible large-scale sell-offs that could further depress Bitcoin prices.
Analyst Raises Alarms
Market analyst Willy Woo has voiced concerns about Bitcoin’s weakening support below the $60,000 threshold. Woo warns that if Bitcoin fails to hold this level, it could trigger a significant bearish trend, potentially driving the price down to $54,000.
He attributes recent price retests at $58,000 to liquidations of leveraged positions and selling pressure from miners, indicating that the market has not yet fully recovered from its downtrend and remains susceptible to further declines.
Also Read : Ditch Solana And Stack These Three Altcoins Right Now!
Will institutional investors return, or are they souring on crypto? Stay tuned to find out.
This news is republished from another source.
