- Bitcoin’s latest price movements have created a stir among investors and analysts alike.
- The cryptocurrency continues to face significant downward pressure.
- Market experts suggest further declines as they analyze current trading volumes and market sentiment.
Bitcoin price faces intense selling pressure amid options expiry and market uncertainties, raising concerns of a possible drop to $60,000.
Mounting Pressure on Bitcoin: A Closer Look
The price of Bitcoin has recently dipped below $64,000, spurring concerns among investors and analysts. The latest downturn hints at a potential fall to $60,000, or lower, given the persistent market sell-off.
Bitcoin Options Expiry Intensifies Volatility
The expiration of $1.96 billion worth of Bitcoin and Ethereum options looms large, contributing to market instability. The $1.26 billion Bitcoin options, with a put-to-call ratio of 0.46 and a max pain point of $67,000, stand at the center of this volatility. The significant expiry pressures investors to closely monitor price trends amidst this unstable environment.
Impact of U.S. PMI Data on Bitcoin
The U.S. Purchasing Managers’ Index (PMI) by S&P Global is set to release critical data indicating the health of the manufacturing and services sectors. Earlier reports indicated an increase, with the Composite PMI rising from 51.3 to 54.5 in May. However, the upcoming data suggests a possible slower pace with the Services PMI projected to dip to 54 from 54.8 and Manufacturing PMI estimated at 51 from 51.3.
This data, crucial for investors’ outlook on broader economic conditions, is expected to influence Bitcoin’s price trajectory, especially under the current macroeconomic pressures imposed by the U.S. Federal Reserve’s policies.
Bitcoin ETF Outflows Add to Downtrend
Significant outflows from U.S. Spot Bitcoin ETFs have contributed to the cryptocurrency’s declining momentum. On June 20, for instance, $140 million was withdrawn, with GrayScale’s GBTC alone accounting for $53.1 million. Throughout the week, the total outflows reached approximately $440 million, further straining Bitcoin’s price.
Conclusion
Bitcoin’s price trajectory remains pressured, as evidenced by the recent trading data and expert analysis. Despite several attempts to recover, Bitcoin has been unable to break past crucial resistance levels. Analysts suggest monitoring resistance points and on-chain metrics to detect any potential trend reversals. The current sentiment implies further declines, possibly down to $60,000, before any significant recovery may be seen.
