🔥🔥🔥 Why #bitcoin Price Is Down Today?
Bitcoin Price Drops Amid Mt. Gox #Wallet Movements & Market Factors
Bitcoin experienced a pullback today following reports of Mt. Gox moving a substantial amount of BTC to an unknown wallet, which triggered a broader market selloff. Despite Mt. Gox later denying the sale of $10 billion worth of Bitcoin & Bitcoin Cash for creditor repayments, the market did not recover.
Reasons Behind Bitcoin's Decline
Mt. Gox Trustee Movements:
- Mark Karpeles, former CEO of Mt. Gox, clarified that the trustee was merely preparing for distribution later this year, not selling bitcoins.
- Nonetheless, significant $BTC movements led to a decrease in BTC held by large wallets (1K-10K and 10K-100K BTC), dampening market sentiment.
Market Factors:
- Support Level: Bitcoin remains above the critical support level of $66K.
- US PCE Inflation Data: Traders are wary of upcoming inflation data.
- Crypto Market Expiry: The expiry of $4.66 billion worth of BTC options on May 31, with a put-call ratio of 0.57 & a max pain point of $65,000, suggests potential for further selloffs.
- Implied Volatility: Significant declines in implied volatility across major terms indicate potential for more volatile price movements.
Crypto Liquidations
- In the last 24 hours, the crypto market saw $170 million in liquidations, according to CoinGlass data.
- #Ethereum (ETH) led in liquidation amounts, surpassing Bitcoin’s $25 million in long position liquidations.
- The largest single liquidation order on Binance involved ETHUSDT valued at $4.92 million.
Current Bitcoin Price & Market Activity
- Price Movement: BTC price dropped over 3% in the past 24 hours, currently trading near $68,243. The 24-hour low & high are $67,227 and $70,479, respectively.
- Trading Volume: Increased by over 25%, indicating cautious interest among traders.
Despite reassurances from Mt. Gox, concerns about large BTC movements, inflation data, & upcoming options expiry contribute to Bitcoin's current downward trend.
Source - coingape.com
