Bitcoin price drop also due to summer vacations, says Bitfinex – DiarioBitcoin

As explained Bitfinex, Now that there is greater participation of institutional investors in the market, Bitcoin, These usually stop operating during the summer holiday months, so it is not surprising that this also adds downward pressure.

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• Bitfinex ensures that the fall in the price of Bitcoin It also has to do with summer vacations
• He points out that many institutional investors stop trading around these dates.
• Therefore, there is also less liquidity in the market. Bitcoin
• The price of Bitcoin It has also been affected by sales from Germany and compensation from Mt. Gox
• ETFs Bitcoin They have also seen low trading volumes these days.

The international exchange based in the British Virgin Islands, Bitfinex, considers the bear market it faces Bitcoin These days, this is mainly due to the summer holidays, which means that fewer institutional investors are actively trading on major exchanges.

Bearish pressure due to summer

Analysts’ reading of Bitfinex came to light in an interview conducted by the media The Block, where they claim that there is less liquidity in the main exchanges and stock exchanges, and this is to be expected because fund managers are on holiday in the summer.

As this happens, analysts also highlighted that those who trade in the crypto market, especially users of Bitcoin In the long run, they are taking advantage of this moment to take profits:

“Even for those who have held bitcoins for a period of 3-4 years, we see that long-term users are still taking risks for now and are exiting spot positions. This is due to oversupply from German law enforcement, Mt. Gox sales, or a general lack of conviction in the strength of the market.”analysts noted.

Along with what has already been mentioned, analysts also cite the closure of some mining platforms, which influences the buying/selling dynamics within the crypto mining sector. Bitcoin. This scenario causes those primarily responsible for supporting the operation of the network to maintain their BTC instead of selling them, just waiting for better prices to extract greater profits.

Now we have to consider ETFs

Although the market BTC and cryptocurrencies are not alien to what happens in other international financial spheres, after the arrival of ETFs Bitcoin In cash, a very important element is added to consider now when analyzing price fluctuations.

According to information published by Farside Investors, BlackRock and Fidelity They capitalize around USD $17,739 million and USD $9,243 million in net income, respectively, managing the products that usually move the most capital within the ETF sector. Bitcoin cash.

The fall in prices of Bitcoin It has also been associated with the liquidations seen in recent weeks among spot ETFs, which implies sales on major exchanges, increasing supply over demand in those markets.

Price of Bitcoin below USD $60,000

The fact is that all these factors are pushing the price of Bitcoin down, which today reached its lowest point in the last week in the early hours of the morning after reaching USD $53,900.

At the time of writing, the price has partially recovered and is quoted at around USD $56,370 per unit, a figure that is 6.1% below the values ​​seen yesterday at this time.

As well as Bitcoin is on the decline, this effect was also felt among the main altcoins on the market. The case of Ethereum stands out, which lost the support of USD $3,000 and is now at around USD $2,991 per unit.

Article by Angel Di Matteo / Bitcoin Diary

Picture of Unsplash

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