Bitcoin Price Dips Below $60,000 for First Time Since May, Crypto Bears Grow Vocal
Bitcoin experienced a significant drop on Monday, reaching its lowest value since May 3. This decline extended the downward trend that has been impacting the cryptocurrency’s impressive gains since the approval of spot bitcoin exchange-traded funds in January.
At its lowest point, Bitcoin fell by almost 7% by 6:30 p.m. Greenwich Mean Time, trading around $59,800 before rebounding to approximately $60,200 shortly after. Despite this recent dip, Bitcoin is still up 42% year-to-date, with most of the gains attributed to the ETF approval.
The current market downturn seems to have been triggered by expected sales related to the impending return of nearly $9 billion worth of bitcoin to creditors from the long-closed Japanese exchange Mt. Gox. Additionally, the reported sale of hundreds of millions of dollars in cryptocurrency by the German government has also contributed to the downward pressure on Bitcoin.
On the same day, other cryptocurrencies like Ether, Binance coin, and Solana also experienced declines of 2.8% or more, indicating a broader trend in the digital asset market.
A noteworthy trend observed recently is the higher volume of Bitcoin withdrawals compared to deposits at crypto exchanges, with withdrawals exceeding deposits by $522 million from Wednesday to Sunday. This suggests that a significant number of Bitcoin holders are choosing to cash out their investments.
Analysts from Bernstein noted the resurgence of bearish sentiment in the crypto market, stating, “The crypto bears have become louder again. After months of Bitcoin ETF euphoria, the market suddenly feels bearish.” Despite this, the Bernstein group maintains an optimistic outlook, setting a price target of $200,000 for Bitcoin, anticipating a substantial price increase.
Bitcoin’s value has soared nearly 300% since the end of 2022, with much of this growth attributed to the excitement surrounding spot bitcoin exchange-traded funds. These ETFs have played a crucial role in bringing Bitcoin into the mainstream investment arena, with major financial institutions like BlackRock and Fidelity offering low-fee funds for investors to access Bitcoin’s price directly through traditional brokerages.
As the most valuable cryptocurrency by market capitalization, standing at $1.2 trillion, Bitcoin continues to be a focal point in the digital asset space, with its performance closely watched by investors and market analysts alike.
