Crypto expert Ash Crypto has drawn attention to speculation about how institutions could be deliberately crashing the Bitcoin price. This comes as the Bitcoin ETFs continue to register massive outflows, causing this latest decline for the leading crypto.
Expert Highlights Speculations About Institutions Deliberately Crashing Bitcoin Price
In one X messageAsh Crypto claimed that there were rumors that institutions are deliberately crashing the Bitcoin price so that they can buy at lower prices sooner the Clarity Act has been signed into law. The expert noted that a similar pattern had occurred in August 2022, when BlackRock filed for a private Bitcoin trust, and BTC later fell about 36% before forming a bottom.
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Afterwards, BlackRock filed for a spot Bitcoin ETF, and the Bitcoin price later increased by 95%. Ash Crypto noted that BTC hit a new high in January 2024 when spot ETFs were approved. He added that insider institutions are repeating the same strategy with the Clarity Act story.
The Bitcoin ETFs have largely contributed to the Bitcoin price decline, with these funds recording outflows in 13 of the past 14 trading days. During this period, their total net worth fell from approximately $104 billion to $82 billion. Strategy co-founder Michael Saylor also mentioned this outflow in his commentary on the BTC crash.
In one X messageSaylor said capital markets are funding the AI expansion on a historic scale, deploying $400 billion in six months, while BTC ETFs have seen $4 billion in outflows since May 14, putting pressure on the Bitcoin price. He stated that this is a capital rotation and not a depreciation of BTC, while adding that volatility creates opportunities.
BTC simply follows the four-year cycle
Crypto analyst Benjamin Cowen has echoed this that Bitcoin price simply follows the four-year cycle. He also said that the bull case for BTC is that if the economy is still doing well after hitting a four-cycle low, it should not be a problem to enter the next phase. bull market. Based on historical trends, the bottom of the bear cycle could occur in the fourth quarter of this year.
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In the meantime, Cowen noted that the interim years are always very bad for crypto, and that this year is even worse as Bitcoin’s price outpaces apathy. He opined that Bitcoin will survive, although many crypto assets may become extinct. Crypto analyst Ali Martinez warned that BTC isn’t looking good right now and the leading crypto could fall to the next important point of support between $54,000 and $50,000.
At the time of writing, the Bitcoin price is trading around $63,100, down in the past 24 hours. facts from CoinMarketCap.
Featured image of Pngtree, chart from Tradingview.com