Will a large-scale fund sell-off be the reason for the BTC plunge?
Bitcoin has been struggling in the bear market recently, and the decline in June is not over yet. BTC is currently around $64,000, and market conditions are not good, while there are concerns that stupid fund sell-offs will push prices down.
As the price of Bitcoin fell below $65,000, some dormant wallets became active, and one wallet transferred 25,000 BTC in six transactions, increasing market anxiety. Data shows that as market sentiment becomes pessimistic, these wallets that hold BTC for 3 to 5 years may be ready to sell.
Bitcoin ETFs have seen a large outflow of funds, with more than $500 million in funds outflowed in the past week. In addition, the German government transferred a large amount of BTC it holds to exchanges, increasing market supply.
Although the sell-off continues, more than 87% of Bitcoin holders are still in profit, indicating that there is room for further profit-taking. Analysts believe that Bitcoin price consolidation may continue until the end of summer 2024, and a new bull market may start around September, with major activities expected to appear around the US election.
The price of personal consumption expenditures (PCE) in May will be an important focus, and the decline in core PCE may indicate that there is a downside risk to the index. Weak retail sales may also exacerbate this trend.
If the Fed cuts interest rates, Bitcoin may reach $100,000 by the end of the year. Well-known analyst Rekt Capital believes that Bitcoin is not ready to end the downtrend in June, but once it reverses and rises, it will be a downtrend line worth paying attention to.
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