Bitcoin (BTC) Price Plummets: Key Factors Behind Today’s Decline Explained

• Bitcoin price fails to recover after Mt Gox denied reports of selling BTC amid massive BTC move by trustee.
• Traders await US PCE inflation and Bitcoin options expiry.
• BTC recorded $25 million in long positions liquidation.

Bitcoin price struggles amidst market selloff and looming economic data, sparking concerns among traders.

Bitcoin Price Decline Amid Mt Gox BTC Move

Bitcoin price saw a pullback today after reports of Mt. Gox’s massive BTC move to an unknown wallet address triggered a broader market selloff. Mt Gox later denied claims of selling $10 billion worth of Bitcoin and Bitcoin Cash reserves for making repayments to creditors. However, the crypto market failed to rebound despite denial by a former executive.

Market Sentiment and Whale Activity

Mark Karpeles, former CEO of Mt. Gox, said “Everything is fine with MtGox. The trustee is moving coins to a different wallet in preparation of the distribution that will likely happen this year, there is no imminent sale of bitcoins happening.” However, large amounts of Bitcoin have been moved causing a net drop of BTC held by 1K-10K and 10K-100K BTC wallet addresses. This caused sentiment to remain down as traders considered other factors.

Bitcoin still holds firm above key support level at $66K, but headwinds such as strong US PCE inflation data and crypto market expiry on May 31 are likely factors traders considered staying away from the market.

Crypto Liquidations

The crypto market saw $170 million liquidated in the last 24 hours, as per CoinGlass data. Ethereum (ETH) outpaced Bitcoin in liquidation, with BTC recording $25 million in long positions liquidation. The largest single liquidation order happened on crypto exchange Binance as someone traded ETHUSDT valued at $4.92 million.

BTC price fell over 3% in the past 24 hours, with the price currently trading near $68,243. The 24-hour low and high are $67,227 and $70,479, respectively. Trading volumes rise over 25%, indicating interest among traders but with caution.

Impact of US Economic Indicators

The US dollar index (DXY) rose above 104.54 after the recent drop in the dollar index. Meanwhile, the US 10-year Treasury yield also climbed to 4.54% after poor results of the 5-year and the 2-year auctions triggered a selloff. In addition, Minneapolis Federal Reserve President Neel Kashkari noted that the current policy stance is restrictive but emphasized that officials haven’t entirely ruled out additional rate hikes.

Conclusion

In conclusion, Bitcoin’s recent price decline can be attributed to the market’s reaction to Mt Gox’s BTC move, significant whale activity, and looming economic data such as the US PCE inflation and Bitcoin options expiry. Traders remain cautious, and the market sentiment is influenced by both internal crypto market dynamics and broader economic indicators. As the situation develops, it will be crucial to monitor these factors for a clearer outlook on Bitcoin’s future price movements.