Here’s the Reason for BTC's Recent Drop in Price:
🚨 BTC Liquidations
- Futures Trades: Futures trades betting on higher prices lost over $230 million in the past 24 hours.
- Liquidations: BTC and $ETH -tracked futures saw over $60 million in long #Liquidations each, while products tracking DOGE, SOL, XRP, and Pepe coin (PEPE) recorded at least $4 million in losses.
🚨 #BTC ETF Outflows
- Spot Bitcoin ETFs: U.S. spot bitcoin ETFs saw $20.45 million in net outflows yesterday. Nine funds, including BlackRock’s IBIT, had zero flows.
- Grayscale’s GBTC: Reported daily net outflows of $26.99 million, countered by $6.55 million in net inflows from Fidelity’s FBTC.
- Trading Volume: Recent trading volume of spot bitcoin ETFs is lower than in March when they saw daily volumes of around $8-10 billion. The ETFs have accumulated a total net inflow of $14.62 billion since their January inception.
🚨 Mt. Gox Repayments & Miners Sell-Offs
- Sell Pressure: Fears of sell pressure from #MtGox repayments and possible miner sales have also led to Bitcoin dropping below $59,000, with major tokens like ether and Solana's $SOL also declining.
- Miner Sales: Miners are still being extremely underpaid, leading to increased selling of their tokens.
🚨 Germany’s Continued Sell-Offs
- Nation-State Holdings: #Germany is one of the largest nation-state holders of Bitcoin.
- Government Sales: Over the past few weeks, the German government has transferred large amounts of BTC to exchanges, summing to over 2,700 $BTC .
These factors collectively contributed to the recent drop in BTC's price. Stay informed and cautious in the current market conditions.