Bitcoin (BTC) price fell from the $70,000 mark to $67,277 in the last 24 hours, causing losses in altcoins as well. There are many reasons for the increased volatility. The primary reason is the movement of MTGOX assets. So, what should we know about the current predictions and the latest situation?
Why Did Bitcoin (BTC) Drop?
Events like MTGOX and SilkRoad pose significant risks for cryptocurrency investors. If billions of dollars worth of supply are sold in an already massive demand environment, it could trigger significant losses. And of course, this expectation causes investors to close their positions at a loss.
In the last 24 hours, MTGOX assets were transferred from wallets to an unknown address. The latest wallet movements show that the funds were moved in thirteen transactions. A test transaction worth $3 likely took place on May 20, followed by a smaller transaction of $160 during the May 28 Asian session. The remaining transactions ranged from $1.2 million to $2.2 billion. The assets of the exchange, which closed in 2014, have reached a massive value today, exceeding $9 billion.
Spot Bitcoin ETF Data
As of May 28, total inflows into spot Bitcoin ETFs amounted to $13.68 billion. The desired stability in net inflows has not been achieved for weeks, and inflows are flat. The stagnation of ETF inflows forces traders to act more cautiously.
One reason for this is the Fed’s potential to keep interest rates higher for a longer period and the fact that the path to the 2% inflation target has become more challenging.
Cryptocurrency Market Commentary
For 8 days, the total market value of cryptocurrencies has been fluctuating between $2.47 trillion and $2.56 trillion. After the last test of $2.65 trillion, we experienced a new pullback. Fed’s Kashkari’s statement that “rate hikes are not off the table” triggered this in terms of news flow.
Overall, the consolidation trend of the crypto market continues as it typically does in bull markets. We have seen many times before that the stalling at the upper slope line of the descending channel model eventually breaks upwards, and we should experience a similar process again. If the expected scenario occurs, we could see the total value of cryptocurrencies reach $3.1 trillion by the end of May to mid-June.
