Bitcoin has fallen again: Investing names three reasons
Kyiv • UNN
The price of bitcoin has fallen from recent highs of around $70,000 due to significant liquidations at $72,000, $69,000, and $66,000, outflows from US bitcoin exchange-traded funds, indicating profit-taking, and a decline in enthusiasm in the market, despite some funds showing steady inflows.
Bitcoin failed to reach the level above $70,000 again. Analyzing the latest data on liquidations, ETF activity, and market reports, Investing identified the main reasons for this dynamics, UNN writes.
First of all, the heatmap of liquidations shows significant sales at the levels of $72,000, $69,000, and $66,000, which prompted the price of bitcoin to fall due to forced closure of leveraged positions. This caused significant selling pressure and a rapid decline in prices.
Second, U.S. bitcoin ETFs have seen significant outflows, especially after 19 days of inflows, recording net outflows of $64.93 million on Monday, indicating that investors are shifting from accumulation to profit-taking or risk mitigation. Grayscale's GBTC stood out among the largest outflows, followed by other large funds.
Third, the overall trend in the market shows a decline in enthusiasm, despite the fact that there are funds with stable inflows, indicating profit-taking after a long period of positive investment. Despite the negative trend, there are funds that continue to show investment growth.
Recall
On Monday, the price of bitcoin stabilized after a significant drop over the weekend, when it retreated from its recent highs, drawing attention to key indicators of interest rates in the United States.
