Due to increased selling pressure in the market, Bitcoin has fallen to around $64,000, its lowest level since mid-May.
Since breaking through the $70,000 barrier at the beginning of the month, Bitcoin has primarily moved sideways or downward. Subsequently, the flagship asset has lost over 10% of its gains over this time.
Why is the price of Bitcoin dropping?
The largest cryptocurrency exchange in the US, Coinbase, appears to be the source of some recent selling pressure, according to on-chain data. $10 million in spot-selling activity occurred on the platform, according to Glassnode statistics, which is the most amount within a 10-minute span in a week.
Notably, on June 19, the German government moved $600 million in Bitcoin, of which $195 million was transmitted to four exchange addresses—Kraken, Bitstamp, Coinbase—and contributed to the ongoing selling pressure.
Experts in the market have linked the current decline in Bitcoin’s value to a rise in withdrawals from US-based spot exchange-traded funds (ETFs). Following their introduction in January, demand in these ETFs increased dramatically, resulting in an inflow of over $53 billion; nevertheless, during the last week, net outflows have exceeded $900 million.
In addition, the financial strain brought on by the most recent halving event has caused Bitcoin miners to sell off their holdings. The price of Bitcoin, according to analyst Willy Woo, won’t rise again until “weak miners die and hash rate recovers.”
$20 million paid out in under one hour
According to Coinglass data, the market decline has liquidated about $20 million in cryptocurrency holdings in the previous hour, for a total of $150 million in the past 24 hours.
Examining the liquidations in more detail reveals that long traders who wagered on price increases lost $106 million, which was the largest loss. On the other hand, traders who were short and had a more pessimistic outlook were liquidated for $44 million.
The biggest losers were bitcoin traders, who lost $42 million in total—$26 million from long holdings and $16 million from short positions. Ethereum traders came in close behind, with $28 million in liquidations.
The largest single liquidation happened on Bybit and was a $8.09 million BTCUSD transaction.
