The recent dip in Bitcoin has fueled market concerns, with the crypto dropping below $59,000. The sudden freefall in BTC price has left investors looking for potential reasons behind the drop. It appears that a flurry of factors are in play behind the recent selloff, including macroeconomic concerns and other market trends.
So, let’s take a quick tour of the potential reasons behind the recent dip in BTC price.
Why Is Bitcoin Dropping Today?
The recent selloff was sparked by a massive dump by a whale one of the leading crypto exchanges recently. In addition, recent reports indicate that investors are staying on the sideline ahead of big earnings that are expected to set the path ahead for the US stock market.
Traders Await Nvidia And Other Earnings Results
The investors appear to be taking a pause ahead of big tech earnings this week which includes the chipmaker NVIDIA. The chipmaker is expected to release its Q2 FY25 financial results on August 28, after the market close. In addition, other big techs including Salesforce, CrowdStrike, and HP Inc., among others are also scheduled to report their earnings tomorrow.
Having said that, it appears that the investors are seeking further clarity before putting their bets into riskier assets like Bitcoin as well as in the overall crypto market. A recent CNBC report citing Wolfe Research said that Nvidia earnings will play a crucial role in setting the market sentiment this week.
US PCE Inflation Data To Impact BTC Price
The traders are also awaiting the US PCE data to gauge the latest inflationary pressure in the country. Although bets are soaring over a potential rate cut by the US Federal Reserve, especially after Jerome Powell’s speech last week, investors would be keeping a close watch on the upcoming economic figures.
The Fed Chair hinted at a dovish move with their policy rates going forward. However, he also said that the central bank will be evaluating the future economic data while deciding its next stance. Having said that, if the US PCE inflation figures come in hotter than expected, it could dampen the sentiment of the broader financial market.
In addition, the US job data, scheduled for September 6, will also play a key role in deciding the Fed’s next move with their interest rate plans. However, according to the CME FedWatch Tool, there are 66% odds of a 25bps rate cut by the central bank at their September meeting.
Whale Dump Sparks Concern
A recent report from Whale Alert showed that a whale, identified by the wallet address “bc1qc….e3gvh” had moved 2,300 BTC, worth $141.81 million, to Kraken before the BTC crash. According to Arkham Intelligence report, the whale still holds 18.141K BTC, worth $1.07 billion.
Considering that, if the whale decides to book profit, it could impose immense pressure on the crypto. Notably, the recent surge in the crypto’s price to nearly $65K has helped many investors to book profit, especially after volatile trading over the past few days.
BTC Price Dips Below $59K
As of writing, BTC price was down 6.59% to $58,893, while its trading volume soared 30% to $37.30 billion. Over the past hour, the crypto has touched a low of $58,116, while hitting a 24-hour high of $63,210.80.
Meanwhile, BTC Futures Open Interest (OI) dropped over 7% over the last 24 hours to $31.09 billion, while noting a drop of around 3% in the past hour. Besides, over the last hour, the flagship crypto has faced liquidation of $26.35 million, CoinGlass data showed. In a 24-hour time frame, the overall crypto market noted a liquidation of $312.94 million.
However, despite the recent downturn, a recent Bitcoin price prediction hints that the crypto could hit $65,000 soon if it breaks a key resistance level.
Rupam Roy
Rupam, a seasoned professional with 3 years in the financial market, has honed his skills as a meticulous research analyst and insightful journalist. He finds joy in exploring the dynamic nuances of the financial landscape. Currently working as a sub-editor at Coingape, Rupam’s expertise goes beyond conventional boundaries. His contributions encompass breaking stories, delving into AI-related developments, providing real-time crypto market updates, and presenting insightful economic news. Rupam’s journey is marked by a passion for unraveling the intricacies of finance and delivering impactful stories that resonate with a diverse audience.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
In an unprecedented development, a smart money address has made over $14 million in profit by selling Wrapped Bitcoin (WBTC). As the Bitcoin (BTC) price touched an ATH this year, the smart money started gradually offloading its holdings, making a staggering ROI. Meanwhile, the BTC price today traded at the $59,000 level, with market participants speculating over the asset’s future price trajectory.
WBTC Smart Money Nabs Huge Profit
According to on-chain data from Arkham Intelligence, the smart whale address “ox3c9” liquidated its Wrapped Bitcoin holdings accumulated over the past 10 months, making a staggering $14.26 million profit. The address initially started bagging coins from Binance in October 2023, totaling his holdings to 618 tokens. Subsequently, as the BTC price touched an ATH in March this year, the whale started gradually reducing his position.
Notably, by selling $38.89 million worth of tokens at an average selling price of $62,921, the address made the abovementioned profit. Besides, the trail of transactions has also sparked speculations on BTC’s waning potential to offer investors gains.
WBTC is an Ethereum-based token on par with BTC, i.e., one-to-one in value. The token’s price has fluxed in tandem with Bitcoin’s price post-halving, attributable to numerous on-chain and macroeconomic factors.
Bitcoin Market Performance
On Saturday, August 17, the BTC price gained nearly 1% at press time to trade at $59,207. The coin’s 24-hour lows and highs were recorded as $57,582 and $59,847, respectively. Whilst, WBTC price traded at $59,129 today.
BTC’s 24-hour trading volume saw a 26.36% decrease over the past day to $25.58 billion. However, the flagship crypto’s dominance stood at 56.29%, a 0.48% increase over the past day.
BTC Futures OI saw a 2.11% increase to $30.36 billion today, per Coinglass data. However, the derivatives volume dipped 31.05% to $51.04 billion, sparking mixed market sentiments on the asset.
Additionally, the RSI rested along the 55 mark, hinting that the asset is neither overbought nor oversold. Also, Bollinger Bands on the chart illustrate that the asset is trading in a period of low volatility as the bands inch closer. This. paves the way for a potential trend breakout ahead, with crypto market participants extensively eyeing the coin.
Also Read: Top Reasons Why Bitcoin Price is Up Today
Coingape Staff
CoinGape comprises an experienced team of native content writers and editors working round the clock to cover news globally and present news as a fact rather than an opinion. CoinGape writers and reporters contributed to this article.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
- Coinbase and MicroStrategy stocks rose 6% and 7% respectively as Bitcoin surged to above $59,000.
- Analysts say crypto markets may be choppy amid potential bearish catalysts.
Coinbase and MicroStrategy stocks have climbed more than 6% each on Aug. 8 (as of 2 pm ET), gains that come as the price of Bitcoin broke above $59,000.
The Coinbase (COIN) stock traded around $192.30 while MicroStrategy’s MSTR hovered near $134. 23.
Read more: Michael Saylor’s bet on Bitcoin paying off, his BTC holdings now valued at $1B
Bitcoin’s surge sees it extend recent momentum since reclaiming support above $50,000. According to data on CoinGecko, the flagship cryptocurrency is up 7% in the past 24 hours. Losses over the past week have shrunk to about 5%.
Amid this, crypto analyst Ali Martinez says long-term holders have aggressively bought the recent dip.
While we got liquidated trading #Bitcoin futures during the recent dip to $49,000, long-term $BTC holders were buying. They added over 184,500 #BTC to their portfolios, worth around $10 billion! pic.twitter.com/zTL04qy8qQ
— Ali (@ali_charts) August 8, 2024
Short term outlook
This positive movement for BTC comes as XRP led the crypto market higher after the latest court ruling in the Ripple vs. SEC case. XRP traded to above $0.63 to help Stellar (XLM) and other altcoins higher. Ethereum also breached the $2,600 mark.
However, XRP is poised at a key resistance zone and Ethereum may yet have to battle bearish pressure from potential selling.
“There is a potential cap on the topside in the near term with Jump Trading continuing its ETH liquidations (21,394 $wstETH ~$63.6M left) and Plus Token Ponzi 2 ETH wallets moving a total of 25,757 ETH ($63.1M) in the last 30 hours,” analysts at QCP Capital wrote.
The broader market is also still largely tinged with caution as analysts point to jitters around the global macro environment and geopolitical tensions in the Middle East. In this case, crypto could still see a retreat amid a choppy month or so.
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The week is turning out to be great for spot Bitcoin ETFs as they started the week with a $520 million inflow on Monday and recorded another strong inflow of $577 million on Tuesday. The massive inflow came on the back of BlackRock iShares Bitcoin ETF witnessing an inflow of $520 million alone, pointing out high odds of BTC price rally to $60,000.
BlackRock Leads Spot Bitcoin ETF Inflow
Spot Bitcoin exchange-traded funds (ETF) witnessed $577 million net inflow (or 10,167.5 BTC net inflow) on February 27, according to data by BitMEX Research. This was the third-largest inflow until launch, as all nine spot Bitcoin ETFs recorded massive trading volumes. However, Grayscale’s GBTC outflow increased again on Tuesday after dropping to $22.4 million a day before.
BlackRock iShares Bitcoin ETF (IBIT) saw over $520 million, breaking its largest inflow to date record. IBIT also saw a record $1.3 billion trading volume, exceeding the daily trade volume of most large-cap US stocks. Following the latest inflow, BlackRock’s net inflow hit over $6.5 billion and asset holdings jumped over 141,000 BTC.
Fidelity Bitcoin ETF (FBTC) and Ark 21Shares (ARKB) Bitcoin ETF saw $126 million and $5.4 million, respectively. Bitwise (BITB), VanEck (HODL), and others spot Bitcoin also saw substantial inflows, indicating strong bullish sentiment among retail and institutional investors.
Notably, GBTC saw a $125.6 million outflow, an increase from Monday’s $22.4 million outflow, setting aside hopes of a paradigm shift. Bloomberg senior ETF analyst Eric Balchunas said the daily trading volume of nine new spot Bitcoin ETFs except GBTC exceeded $2 billion for the second consecutive day as BTC price holds strongly above $57K.
Also Read: Sam Bankman-Fried’s Defense Counsel Proposes 6 Year Sentence or Less
BTC Price Breaks Above $59,000
Crypto Fear & Greed Index has reached a 4-year high value of 82 today, with the market sentiment currently in the ‘Extreme Greed’ zone. The FOMO reaches into Wall Street as traders’ interest in BTC is extremely high. Experts predicted BTC price to hit $60,000 before bitcoin halving.
BTC price skyrocketed to $59,000, less than 15% away from the $68.6K high established 27 months ago. The 24-hour low and high are $56,219 and $59,000, respectively. Furthermore, the trading volume has increased slightly in the last 24 hours, indicating interest among traders.
Good morning,#Bitcoin is above $58K, where funding rates are going through the roof.
Astonishing strength, definitely areas to start looking for profits. pic.twitter.com/WXRzkEkaBA
— Michaël van de Poppe (@CryptoMichNL) February 28, 2024
Also Read: US SEC Request Judge Torres to Extend Remedies Briefing Deadlines in Ripple Case
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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