Bitcoin falls below $57,000, 500 million magnesium sold across the network
Data from the cryptocurrency ranking website CoinGecko shows that Bitcoin has been weak recently, falling 8.4% in seven days, and once fell to a low of $56,771 this morning (5th).
Meanwhile, bulls in the cryptocurrency leveraged contract market are facing large losses. CoinGlass data shows that in the past 24 hours, a total of 187,000 people were liquidated in the leveraged contract market, and the total liquidation amount was approximately US$509 million. Among them, long orders (buy orders) were liquidated at US$440 million, while long orders in Bitcoin were liquidated. The warehouse volume also exceeds US$160 million.
Image source: CoinGlass
Cryptocurrency leveraged contracts market liquidated $509 million in the past 24 hours
Why has Bitcoin been falling recently? Foreign media reveals 3 major disadvantages
While U.S. stocks are performing well, why has Bitcoin been falling recently? Some foreign media in the currency circle believe that there are three major reasons:
Reason One: Government and Mt. Gox Move Bitcoin
Blockchain data platform Arkham monitored that the bankrupt exchange Mt. Gox moved 47,229 Bitcoins to other wallets this morning, seemingly in preparation for starting to pay creditors in July.
Source: Arkham
Currently, Mt.Gox holds 142,000 Bitcoins ($BTC) and 143,000 Bitcoin Cash ($BCH) as well as some legal currency assets.
Arkham also detected that the German government had moved $175 million worth of Bitcoin to other wallets, with $75 million of that transferred to the Kraken and Coinbase exchanges. Arkham CEO previously pointed out that when an asset is transferred from a wallet to an exchange, it usually represents the holder’s intention to sell.
Reason 2: The Fed may only cut interest rates once this year
U.S. Federal Reserve Chairman Jerome Powell gave a speech this week. Although his speech was interpreted as a "dovish message" by the market, according to the interpretation of the financial media "The Kobeissi Letter", the Federal Reserve expects the inflation rate "this year or next year" The 2% target will not be reached, and with the unemployment rate only at 4%, cutting interest rates too quickly could bring inflation back up.
The media believes that although the market expects the Federal Reserve to cut interest rates twice this year, Ball’s latest speech suggests that it may only cut interest rates once this year.
Source: X
Foreign media speculate that the Fed will only cut interest rates once this year
CME Group Fed Observer data shows that the market currently expects that the probability of a first interest rate cut in September and November is 66.5% and 52.2% respectively, while the probability of another interest rate cut in December is only 46%.
Source: Fed Observer
The market expects the probability of the first U.S. interest rate cut in September and November
Reason three: Bitcoin spot ETF fund outflows
Foreign media in the currency circle "Cointelegraph" pointed out that the current decline further reflects that Bitcoin spot ETF investors are adopting a de-risking strategy, and the net outflow of ETF funds coincides with the acceleration of long liquidation in the derivatives market. As mentioned at the beginning of the article, in the past 24 hours Long orders across the entire network have been liquidated for US$440 million.
Data from digital asset management company CoinShares shows that digital asset investment products issued by institutions experienced capital outflows for the third consecutive week, with a small net outflow of US$30 million last week. Data from the British investment company Farside Investors shows that except for an inflow of US$129 million on Monday, the other two days this week were small net outflows. July 4th, U.S. time, coincides with Independence Day, and U.S. stocks will be closed for one day.
Source: Farside Investors
U.S. Bitcoin Spot ETF Fund Flow Chart
[Disclaimer] There are risks in the market, so investment needs to be cautious. This article does not constitute investment advice, and users should consider whether any opinions, views or conclusions contained in this article are appropriate for their particular circumstances. Invest accordingly and do so at your own risk.