Why did the price of Bitcoin fall to $60,000 and what will happen next?
Key facts:
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More than $13 million left US Bitcoin ETFs yesterday.
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In the medium and long term, expectations for bitcoin remain bullish.
Bitcoin (BTC) has “crashed” in the last few hours, trading for a few minutes below $60,000.
The following chart, provided by TradingView, allows us to observe the movement of BTC over the last 24 hours.
At the time of this publication, as can be seen in the CriptoNoticias Price Calculator, Each bitcoin is trading for $60,300 on major exchanges.
This fall is closely related to the outflow of money that occurred yesterday, July 2, in the spot bitcoin ETFs that are traded on the US markets.
The following graph, taken from the SoSoValue platform, shows that A streak of several “green” days was broken (with positive cash flow) for these investment funds:
Investors are probably looking to back themselves up against the imminent release of bitcoins that have been “prisoners” of the bankrupt Mt. Gox exchange for 10 years.
But even if these 140,000 BTC were released and absolutely all of the exchange’s creditors decided to sell them (which is unlikely to happen) the impact would not be that great.
Note that bitcoin ETFs, while having negative cash flow days, are holding nearly 900,000 BTC. They have absorbed a lot of the supply, so that Mt. Gox-related move can be considered minor. Of course it would impact the price, but It shouldn’t be a long-term fall.
Is the Bitcoin bull run over or is there still fuel left for further growth?
In the medium and long term, expectations remain bullish for bitcoin. CriptoNoticias has already reported the opinion (based on on-chain metrics and fundamental analysis) of trader Willy Woo, who thinks that BTC will have several more weeks of lateralization, and then resume the bullish path that would take it to new historical highs.
Complementing Woo’s opinion, Matthew Dixon, an entrepreneur and market analyst, shows that the pattern that the price of bitcoin is currently showing “is very typical of consolidation before the continuation of the bullish trend that is still in force.”
If history repeats itself, bitcoin should have a significant price increase approximately 6 months after the halving. Therefore, By the last quarter of the year, the long-awaited rally could take place, taking Bitcoin to heights never seen before.
