cryptoslate.com
Bitcoin has plummeted to under $64,000, its lowest level since mid-May, driven by heightened selling pressure in the market.
$BTC has mostly traded downwards or sideways after exceeding the $70,000 mark at the start of the month. Since then, the flagship asset has shed more than 10% of its gain during this period.
Why is $BTC falling?
On-chain data reveals that some recent selling pressure originated from Coinbase, the largest US-based crypto exchange. Glassnode data shows that the platform experienced $10 million in spot-selling activity, marking the highest amount within a 10-minute window in a week.
Notably, the German government is also contributing to the current selling pressure, moving $600 million in $BTC on June 19, with $195 million sent to four exchange addresses, including Kraken, Bitstamp, and Coinbase.
Market experts have attributed $BTC’s current price weakness to increased outflows from the US-based spot Bitcoin exchange-traded funds (ETFs). While interest in these ETFs surged after their approval in January, leading to over $53 billion inflow, the past week has seen net outflows exceeding $900 million.
Additionally, $BTC miners have been offloading their holdings due to the financial pressure introduced by the recent halving event. Bitcoin analyst Willy Woo said $BTC’s price would only recover “when weak miners die and hash rate recovers.”
$20 million liquidation in 1 hour
Coinglass data reveals that the market downturn liquidated around $20 million in crypto positions within the past hour, totaling $150 million in the last 24 hours.
A closer look at the liquidations indicates that long traders who bet on price increases faced the most significant losses, losing $106 million. In contrast, short traders, holding a more bearish outlook, were liquidated for $44 million.
Bitcoin traders experienced the highest losses, totaling $42 million—$26 million from long positions and $16 million from short positions. Ethereum traders followed closely, with liquidations reaching approximately $28 million.
The most significant single liquidation occurred on Bybit, involving a BTCUSD transaction valued at $8.09 million.