At the moment of writing cryptocurrency market is experiencing a massive pullback, with prices in red for three consecutive days. The 24-hour market value as a whole fell by $90 billion to $2.17 trillion, or down 3.67%.
Similarly, Bitcoin, readily traded on Quantum Income, underwent losses of 3.27%, standing at $58.067.63. This was preceded by a 3.6% drop measured on July 1 to $60,490.
So now everyone is asking the same thing: Has Bitcoin completely lost its shine, or are we just seeing a little pullback? According to the popular crypto analyst, Wise Advice opines that the decrease is attributed to liquidations government measures changing sentiments within the market massive outflows as well and mining struggles.
- Increasing Liquidations
The market is in the midst of a series of liquidation events, with Bitcoin alone hitting $14 million 24 hours ago. But this shot up to $36 million today and led to a colossal sell-off, putting even more pressure on Bitcoin price.
- Fear In The Marketplace By Government
Actions taken by the German government have only raised market concerns even higher. Bitcoin’s price has caused a great deal of panic among investors. There have been no sales by the government but investors rushed to cover their exposure.
- Bearish Market Sentiment
Sentiment has turned a little Bearish as well. This is especially evident in the downward tilting trend between Bitcoin flows into derivative and spot exchanges, displaying substantial bearish signals. Since then, Bitcoin has lost some crucial support levels and subsequently entered a bearish trend that lasted until now. Whether Bitcoin price can even continue to hold over $60,000 meanwhile is also on the line as weekly Relative Strength Index (RSI) hits 50. Bitcoin (BTC) will have six months of zero volatility if it falls to its price schedule, one market analyst predicts.
- Massive Withdrawals
In a significant outflow on July 3, the Bitcoin exchange-traded fund (ETF) was released. One huge crypto whale dumped various altcoin tokens on the market, basically resulting in hundreds of millions of dollars being erased from existence. In turn, the whale sold 3.13 million LDO tokens – a sum worth $5.77 M USD at current price levels according to Blockchain analytics firm Lookonchain. Additionally, they disposed of their 49,771 AAVE tokens for $4.54 million; 250,969 FXS tokens went for $708k and another set of the UNI lent out was released which accrued to about $$2.41mm
- Mining Struggles
The Bitcoin mining sector is also experiencing difficulties due to a low hash rate. This is leading to a decline in earnings. Those who mined either sold all their holdings through any AI trader bot to support sustainment or are transitioning into various proof-of-work virtual currencies such remain profitable.