Why Is The Bitcoin Price Down Today?

The Bitcoin price is in a decline once more, after seeing some recovery on Wednesday due to the turnaround in the Spot Bitcoin ETFs net flows. However, just one day later, it seems the pioneer cryptocurrency has resumed the downtrend and this decline after the recovery has begun a worrying trend. So, what are the factors that are driving this decline? Bitcoin Price Suffers From Sell-Offs One of the major factors that have been behind the Bitcoin decline is the major sell-offs that have rocked the digital asset. These sell-offs are not just from any investor, but rather large BTC sells being orchestrated by large governments. Related Reading: Bitwise CIO Expects $15 Billion To Flow Into Spot Ethereum ETFs, How Will ETH React? One of the major news that rocked the space was the fact that the German government had begun selling coins. In total, the German government sold around 2,786 BTC, which was worth around $$140 million at the time of the sale. However, the German government is not the only one that has been selling. News also broke that the US government had begun moving Bitcoin seized from the Silk Road bust once again. On-chain data aggregator Arkham reported that the US government had moved almost 4,000 BTC from its wallets to the Coinbase exchange. In total, the US government moved 3,940 BTC to the exchange, which amounted to $241.22 million at the time of the transaction. This transfer is worrying as coins are usually moved to centralized exchanges such as Coinbase for sale as these trading platforms possess deeper liquidity compared to their decentralized counterparts. Has BTC Reached Its Bottom? While the downtrend looks to have resumed, there are signs that point to the bottom being closed. One of these signs is the return of demand into the market. For example, the Spot Bitcoin ETFs had seen seven consecutive days of outflows, which eventually turned around on Tuesday. Data from Coinglass shows that between Tuesday and Wednesday, inflows into the Spot Bitcoin ETFs have crossed $50 million, ending the brutal week of outflows. Related Reading: Triangle Formation That Sparked The 2017 XRP Rally Returns, Whats The Target? Another possible tell is the profit and loss margin for investors. This shows how many Bitcoin investors are currently seeing profit, and the higher the profitability, the higher the likelihood of a sell-off as investors take profit from their positions. However, the profitability levels have dropped, meaning that investors are less likely to sell their holdings as they wait for better prices. This often gives demand time to build up and create a possible bounce point for a recovery. For now, the Bitcoin price is holding steady at the $61,000 support at the time of writing. But if sell-offs resume, then the pioneer cryptocurrency could fall to the $60,000 level soon. Featured image created with Dall.E, chart from Tradingview.com

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US Mega Banks JP Morgan And Wells Fargo Unveil Bitcoin Exposure As BTC Drops To $60,000

JP Morgan and Wells Fargo, two of the largest banks in the United States, have announced their investments into Spot Bitcoin ETFs, unveiling their exposure to BTC, the worlds largest cryptocurrency. This significant development comes amidst the persistent downturn in the crypto market, resulting in BTCs price dipping slightly above $60,000.  US Financial Banks Expose [...]

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Spot Bitcoin ETFs Rocked By Outflows, BTC Price Succumbs To Bears

The Spot Bitcoin ETFs have seen their demand drop since the start of this month, and this was again evident in the considerable outflows recorded on April 26. This poor run has had far-reaching effects on the broader crypto market as Bitcoins price has succumbed to unfavorable market conditions.  Spot Bitcoin ETFS Record $217 Million Of Outflows Farside Investors revealed in an X (formerly Twitter) post that the Spot Bitcoin ETFs recorded $217 million of net outflows on April 25, one of their largest this month. Grayscales Bitcoin Trust (GBTC) accounted for most of these outflows, with investors moving $139.4 million out of the fund.  Related Reading: Why Is The Dogecoin Price Down Today? Some other funds also recorded individual outflows. Ark Invests Spot Bitcoin ETF recorded $31.3 million in outflows, while Valkyrie and Bitwises ETFs saw $20 million and $6 million in daily outflows, respectively. Notably, Fidelitys Wise Origin Bitcoin Fund (FBTC) recorded a net daily outflow for the first time since these funds were approved, with $22.6 being moved out of the fund on Thursday.  Meanwhile, BlackRocks dry spell continued with its iShares Bitcoin Trust (IBIT) recording zero inflows for the second consecutive day. Although the fund has yet to record net daily outflows since launching, this undoubtedly represents a setback, considering that it had, before April 24, recorded 71 consecutive days of daily inflows.  These Spot Bitcoin ETFs’ outflows have led to a wave of sell-offs from the fund issuers to fulfill redemptions. As a result, Bitcoins price action has been rather unimpressive as of late, with the flagship crypto experiencing significant price declines due to the heightened selling pressure. This development has put the bears firmly in control, with data from Coinglass showing that more Bitcoin longs than shorts have been liquidated in the last 24 hours.  Macro Economic Factors Also Affecting Bitcoins Price An initial estimate released by the Bureau of Economic Analysis on April 25 showed that the US Gross Domestic Product (GDP) grew at an annual rate of 1.6% in the first quarter, which was way below expectations. This data report further diminishes hopes of rate cuts this year and looks to have played out in investors’ minds as Bitcoin briefly dropped below $63,000 following the report’s release.  Related Reading: HBAR Prices Crashes 35% As BlackRock Denies Any Ties To Hedera Meanwhile, the Personal Consumption Expenditures (PCE) inflation data is set to be released on April 26. This PCE report could come in higher than expectations, adding to the growing concerns about the unlikelihood of rate cuts this year. Interest rates have significant implications on risk assets, including crypto, and if the Federal Reserve decides to take a hawkish stance, it could negatively impact the crypto market.  BTC price falls toward $63,000 | Source: BTCUSD on Tradingview.com Featured image from Islam and Bitcoin, chart from Tradingview.com

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Crypto Expert Predicts Bitcoin Will Reach $650,000 Due To This Reason

A crypto analyst has made a bold prediction about Bitcoin, anticipating that the pioneer cryptocurrency could surge to $650,000 as the Spot Bitcoin ETF market continues to grow.  BTC’s Next Price Target Expected At $650,000 In an X (formerly Twitter) post published on Monday, Willy Woo, a popular analyst and crypto expert with over 1 million followers, predicted Bitcoins next price target, fueled by the growth and demand of Spot Bitcoin ETFs. Related Reading: Dogecoin Whales Send 800 Million DOGE To Exchanges, Dump Incoming? According to Woo, Spot Bitcoin ETFs could propel the price of BTC to $91,000 at bear market bottoms, while during bull market tops, the cryptocurrency could skyrocket as high as $650,000. Its important to note that at the time of writing, Bitcoin haD not even reached $100,000, and is trading at $63,408, according to CoinMarketCap. Woo has explained that BTC’s surge to this exponential level can only be possible when ETF investors completely utilize their capital. He highlights that a total capital deployment typically takes time, emphasizing that his price predictions are not constrained to the current crypto market cycle.  The crypto analyst also predicted that BTC will eventually flip golds market capitalization as the asset managers capital is deployed. Basing his forecast on golds 12-year bull run after the launch of its ETF, Woo disclosed that Bitcoin could have a similar bullish trend soon.   How Bitcoin Will Surge To $650,000 To efficiently explain his predictions, Woo provided a brief but clear insight into the potential impact Spot Bitcoin ETFs could have on the price of Bitcoin. He provided back-to-envelope calculations that could be used to fully understand how BTC could surge to $650,000. During his calculations, the crypto analyst estimated the total capital managed by asset managers at $100 trillion. He mentioned that the current allocation recommendation was 2% for Bitcoin, and given the total amount of assets managed, it would mean $2 trillion could potentially flow into BTC.  Related Reading: Ethereum Whales Go On Buying Spree As Market Crash Leaves Retail Panicking Presently, Bitcoin holds about $561,159,959 of investments that can be measured on-chain. By adding the potential inflow from asset managers, the total investment in BTC would rise to $2.56 trillion.  Woo also introduced a Market Value to Realized Value (MVRV) ratio, which compares the total market capitalization of Bitcoin to the amount of funds invested into it. The crypto analyst claimed that historically, this ratio usually surges by 5x during bull market tops and by 0.7x during bear market bottoms.  Based on this ratio, Woo calculated the potential market capitalization of BTC, estimating a price of $12.8 trillion during bull tops and $1.8 trillion during bear bottoms. Dividing this total market capitalization by the amount of Bitcoin in circulation would position BTC’s price per coin at $650,000 and $91,000 respectively.  BTC price shows a lot of volatility | Source: BTCUSD on Tradingview.com Featured image from The Cryptonomist, chart from Tradingview.com

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