The price of Bitcoin has suffered Big crashretreating from the psychological level of $70,000 this week. Cryptocurrency expert Nobler pointed out why leading cryptocurrencies collapsed, while analyst Chevy revealed what to expect next from Bitcoin.
Why is the price of Bitcoin collapsing?
in Share XNobler revealed that the issuer of USDT Tether was liquidating some of its Bitcoin holdings, which contributed to the collapse of Bitcoin prices. He noted that this was the first time they sold directly from their homes Bitcoin reserve wallet. The critic added that things are not looking good for cryptocurrencies.
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Data on the chain It showed that Tether transferred 204 BTC from its wallet to the Bitfinex exchange, sparking fears of a sell-off. Tether is among a group of entities believed to have dumped BTC recently, leading to a collapse in Bitcoin prices. Defunct Cryptocurrency exchange Mt.Gox It also transferred 10,422 Bitcoin worth approximately $740 million.
In addition, Bitcoin ETFs Contributing to the sell-off in BTC, with these funds having a 12-day series of net outflows. They recorded a net outflow of $519 million yesterday, according to SoSoValue data. During these 12 days, these funds also recorded a net outflow of $733 million on May 27.
Meanwhile, it should be noted that the Bitcoin price collapse began earlier this week Michael Saylor’s strategy revealed In its SEC filing, it sold 32 bitcoins. This was the first time a Bitcoin treasury company had sold Bitcoin since 2022. This has raised concerns about what this could mean and how much Bitcoin the company could sell going forward.
The price of Bitcoin has also collapsed due to macro factors such as the war between the US and Iran, as a peace agreement seems unlikely anytime soon. BTC is also struggling for liquidity amid upcoming IPOs, such as Elon Musk’s SpaceX, which is expected to go public this year.
What’s next for BTC?
in Share XCryptocurrency analyst Chevy, who predicted that the price of Bitcoin would collapse to $67,000, revealed the next step for Bitcoin. He stated that a comfortable bounce would come next, giving market participants false hope before a bigger pullback occurs. The analyst added that structurally, this is one of the weakest setups BTC has seen This bear cycle.
The accompanying analyst chart showed that Bitcoin’s price could still fall to as low as $60,000, hitting its February low. Cryptographic analyzer Tony echoed Feeling similar, expecting it BTC could still go down to $60,000, although he expects a recovery in the short term.
Related reading: Bitcoin’s 15-year trend shows when a bottom can be expected and when $400,000 will occur
At the time of writing, Bitcoin is trading at around $66,700, down more than 5% over the past 24 hours, according to Data From Coin Market Cap.
Featured image from Pixabay, chart from Tradingview.com
