In such a turbulent week for the global cryptocurrency market, there was a brief moment when Bitcoin (BTC) tried to rise above the $70K level. This was due to a lower-than-expected Consumer Price Index (CPI) and some signals of falling inflation rates. However, after achieving such high levels, Bitcoin struggled to maintain such heights and sank back to roughly $67,400, according to recent information.
From the current market trend, it was found that many key investors had been buying bitcoins in large quantities. According to information from CryptoQuant, over 20,000 Bitcoins were transferred to whale accounts during the recent price decline. Such a pattern suggests that these influential investors are using lower price levels to build up their self-ownership in bitcoins, which could contain fluctuations in the market.
Different representatives of Bitcoin miners have provided different reactions to the current market conditions. The recent halving of Bitcoin, which reduced the miners’ revenue, has caused many of them to decide to sell part of their current reserves to make up for the lost revenues. Miners’ selling activity has contributed to putting additional constant pressure on the price of Bitcoin, as reported by CoinGape.
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On the other hand, Bitcoin ETFs in the United States have been more enduring as funds have continuously flowed in during the last three weeks. Although there was a short time of outflows, net inflows continued, and on Wednesday, June 12, spot Bitcoin ETFs accounted for a massive 101 million USD. At the forefront of these inflows was Fidelity’s FBTC ETF, through which the company received a daily inflow of $50.6 million. The increase in ETF trading implies that investors and traders remain engaged with and confident in Bitcoin even with fluctuations in the market.
A report from Santiment, a blockchain analytics company, revealed that BTC tokens have been at their lowest point on exchange platforms since December last year. This indicates that there are currently only 942,000 bitcoins available for purchase in exchanges. This leaves less room for a sharp downward spiral in the price as fewer coins are up for sale from the supply side. This trend suggests that the market has become less volatile and points towards the change in the behavior of investors who prefer to HODL their Bitcoin.
Although there was a slight drop recently, Bitcoin ETFs, which started early this year, have boosted the mood of investors in the market. Research conducted by CoinGape shows that there was a 55% improvement in investor sentiment after this development. In the future, the market stands at a significant support level of $67,000. If this level is breached, it could extend the bounce towards $65,000 and $62,500.
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While the market is still digesting and analyzing these alterations, the actions of key Bitcoin owners and institutional instruments such as exchange-traded funds (ETFs) will heavily influence its course. Therefore, it remains to be seen whether their actions will help alleviate the selling pressure and sustain the price above $70,000. That is why investors and other spectators must remain rather attentive while observing these events.
