Bitcoin, which has been decreasing gradually in recent days, has fallen below 64 thousand dollars as of today. The German government's sales and the meltdown in Bitcoin ETFs in the USA in the last week stand out as the biggest reasons for the declines.
Bitcoin dropped below $64,000 for the first time in more than a month. The largest cryptocurrency, which pushed the 70 thousand dollar limit last week with the announcement of the Fed decision and inflation data, has been in a gradual decline in recent days.
Bad surprise from the German government
For now, it seems that the German government is behind the downward trend in Bitcoin, which has been experiencing declines of almost 1000 dollars every day this week! The Germans, who started selling 50 thousand Bitcoins seized from the pirated movie site Movie2k in 2020, last day, took away approximately 200 million dollars of BTC. This situation pulled the already declining market even further. It is unknown how long the Germans, who sold more than 3 thousand BTC, will continue these sales.
ETF outflows continue
On the other hand, outflows in spot Bitcoin ETFs in the USA continue. ETFs, which saw net sales of $140 million yesterday, experienced a net outflow of $1 billion in the last 8 trading days.
The fact that the Fed continues to keep interest rates high and that this situation is thought to continue for a while has made the US dollar more valuable compared to the currencies of many developing countries. For this reason, there were various declines in risky assets. Today, the Japanese yen, which has an important place in world trade, also hit its lowest level in the last 34 years against the US dollar.
It does not go unnoticed that various increases in indices such as the S&P 500 and Nasdaq in the USA are driven by a group of large companies. It seems that many companies other than these large companies included in the indices have kept up with the declines.
All these factors caused meltdowns in Bitcoin and altcoins.
Ether ETFs could add vitality
The beginning of July may be a revival month for cryptocurrencies and especially altcoins. Ether spot ETFs, which are expected to be opened for trading in the first days of July in the USA, will enable a certain liquidity to enter the cryptocurrency markets.
Bitcoin was traded at approximately $63,750 at the time the news was written.
-Hakan Ateşler
