Bitcoin Plunges to Lowest Level in 1.5 Months at $58,400 Amidst String of Bad News

The world's largest cryptocurrency, Bitcoin, has dropped to its lowest level since late April, facing significant selling pressure from whales.

Bitcoin Plunges to Lowest Level in 1.5 Months at $58,400. Image: Bitcoinist

Last night and early this morning on June 25, Bitcoin (BTC) continued its deep correction, plummeting to as low as $58,400 before recovering back to around $60,300 at the time of writing.

This marks Bitcoin's lowest price since May 1, 2024, when the currency experienced a record outflow of over half a billion USD from U.S.-based Bitcoin ETFs, driving BTC prices down to $56,500.

1-hour chart of BTC/USDT pair on Binance at 09:45 AM on June 25, 2024

Thus, Bitcoin has lost nearly 12% of its value in just five days since reaching $66,300 on June 20.

Additionally, as reported by Coin68, there are three main factors contributing to the current selling pressure on Bitcoin:

• German Government: Last week, German officials took actions to sell $195 million worth of Bitcoin and still hold nearly $3 billion. It remains unclear what further actions the German government will take.
• Mt. Gox Exchange: After over a decade since the exchange hack event, Mt. Gox has finally confirmed it will reimburse users' assets in BTC, BCH, and Japanese yen starting July. While the percentage of users opting for cash reimbursement remains unknown, Mt. Gox holding up to $9 billion worth of Bitcoin raises concerns about forthcoming selling pressure in July.
• Bitcoin ETFs: Bitcoin ETFs are preparing for their seventh consecutive outflow day (excluding June 19 due to the U.S. holiday), with total outflows exceeding $1.1 billion USD. Given the current market pessimism, this trend is likely to continue in the coming days or even worsen into the next week.

Inflow/outflow of Bitcoin ETFs. Source: Farside Investors (25/06/2024)

Furthermore, the Bitcoin price chart has formed a clear double top pattern, confirmed by a dump from $61,000 to $58,400 early on June 25. However, things could deteriorate further, as some analysts suggest BTC could target as low as $50,000 in this correction.

Yet, there remains a glimmer of hope with the potential approval and trading of Ethereum spot ETF proposals by the SEC. Last week, major Wall Street firms submitted updated S-1 filings as requested by the U.S. Securities and Exchange Commission. Bloomberg analyst Eric Balchunas predicts if all goes smoothly, SEC may allow these ETH ETFs to be listed before the U.S. Independence Day on July 4, opening a new investment channel for U.S. individual and institutional investors into the crypto space.

However, as this has not yet occurred, Ethereum's price at the time of writing also faces a similar plight as Bitcoin, dropping nearly 3% to $3,240 - its lowest since May 20 - when the currency saw a strong revival due to SEC reconsideration of Ethereum ETFs.

1-hour chart of ETH/USDT pair on Binance at 09:45 AM on June 25, 2024

In contrast to Bitcoin and Ethereum's situation, major altcoins have begun to rebound noticeably with double-digit 24-hour growth. However, it's important to note these coins experienced a steep 20% decline just a week ago, making this a mild recovery rather than a reversal in the altcoin trend.

Market volatility of the top 100 largest cryptocurrencies by market cap, screenshot from CryptoBubbles at 09:50 AM on June 25, 2024

Derivative liquidations in the past 24 hours totaled $360 million USD, primarily focused on Bitcoin and Ethereum, with long positions comprising 81.5%.

Derivative liquidations data in the market at 09:50 AM on June 25, 2024. Source: CoinGlass