Bitcoin (BTC) fell below $64,000 on June 21 for the first time in more than a month. Data from Cointelegraph Markets Pro and TradingView shows that BTC went from an opening of $64,840 to an intra-day low of $63,451.
The last time Bitcoin’s price was below $64,000 was on May 15 when it rose from a low of $61,299 to reach a high of $71,980 on May 21, driven by excitement surrounding the approval of a spot Ether (ETH) exchange-traded fund (ETF).
Currently, the largest cryptocurrency by market capitalization is trading at $63,552, down 3.54% in the last 24 hours.
The broader crypto market capitalization has also decreased by 3.24% during the same period, resting at $2.33 trillion, while Ether (ETH) dropped by 2.25% to $3,475.
Let’s explore some reasons why Bitcoin is leading the market in a correction.
Spot Bitcoin ETFs experiencing outflows have put pressure on BTC price. Investors have been withdrawing their investments from spot Bitcoin ETFs for several days now. On June 19, U.S. spot Bitcoin ETFs recorded outflows for the fifth consecutive day, totaling $900 million for the week, the highest since late April. Data from the crypto research platform SoSoValue showed that the 10 listed ETFs lost around $140 million on June 20.
Grayscale’s GBTC had the most significant outflows at $53.1 million, followed by Fidelity’s FBTC at $51.1 million. VanEck’s ETF reported $4 million in net outflows, while Invesco and Galaxy Digital’s funds saw $2 million in net outflows. BlackRock’s IBIT was the only ETF with net inflows of $1.5 million. Other funds from ARK Invest, Valkyrie, Franklin Templeton, WisdomTree, and Hashdex had no net flows.
The total trading volume for spot Bitcoin ETFs on June 20 was $1.16 billion, down from $1.7 billion on June 18, as the market was closed on June 19 for a public holiday.
Bitcoin’s downward trend could also be attributed to reduced demand resulting from declining network activity. Glassnode data shows that daily active addresses on the Bitcoin network declined from 971,789 on April 4 to 632,620 on June 20, marking a 35% decrease over the last 90 days.
Popular analyst Ali Martinez also noted the reduced activity on the Bitcoin blockchain, sharing a Glassnode chart on the X social network showing a decline in Bitcoin exchange inflow volume over the last three months.
From a technical standpoint, Bitcoin’s price decline is part of a broader correction that started after being rejected from the $72,000 resistance level on June 7. During this decline, BTC lost key support levels, including the 50- and 10-day exponential moving averages (EMAs) at $66,724 and $66,594, respectively. The 200-day EMA at $64,294 served as the final line of defense for Bitcoin.
At the time of writing, BTC’s price was breaching the support of the 200-day EMA, with a 15% increase in daily trading volumes indicating the continuation of the sell-off. Key levels to watch on the downside are $60,000 and the $56,500 swing low.
This article does not offer investment advice. All investment and trading decisions involve risks, so readers are advised to conduct their research before making any decisions.