The decline in Bitcoin that started about two weeks ago caused a drop from $70,000 to $58,500 but seems to have ended for now. After the decline, there was a recovery, and the price returned to the $62,000 level. However, today, the price has started to decline again.
Bitcoin and US Data
Bitcoin’s price did not show significant movement in response to the latest US macroeconomic data. The Core Personal Consumption Expenditures (PCE) price index, the Federal Reserve’s preferred inflation measure, increased by 2.6% annually in May, reaching its lowest level since March 2021.
Monthly reviews revealed another significant development in the core PCE, with a slow increase of 0.1%, the slowest rise since November 2023. Despite all this, the BTC price continues to find buyers at the $60,000 level.
Another significant move occurred in the US, where approximately 11.84 BTC worth about $726,000 was sent from addresses related to the government to new addresses. Such transactions have also led to larger cryptocurrency transfers.
Analyst Comments on Bitcoin
Leading analysts comment that Bitcoin’s price is getting closer to falling below the $60,000 level day by day. If the price drops to these levels, a significant decline may occur, and the price could subsequently fall to $54,000.
According to the CryptoQuant chart (below), Bitcoin’s critical support level is seen at the $56,000 region. If this level is broken, a sharper decline may occur.
According to analyst Willy Woo, there is significant pressure on prices, which have recently fallen to the $58,000 level, due to many positions awaiting liquidation and miners selling to reduce their expenses.
Decreasing Demand, Trading Volume, and Open Interest
Another factor thought to be causing Bitcoin’s price decline is the decrease in demand from long-term investors across the country. There has been a noticeable drop in the demand from BTC holders investing with long-term expectations.
According to data provided by IntoTheBlock, approximately 160,000 BTC worth around $10 billion were sold as of May. Following this, when the calendar showed June, another 40,000 BTC were seen to have decreased from long-term investors’ wallets.
These declines have been characterized as parallel to the price fluctuations in BTC and are thought to have an impact on the price decline.
