The Bitcoin price has suffered a significant crashwhich fell from above the psychological $70,000 mark this week. Crypto expert Nobler touched on why the leading crypto crashed, while analyst Chiefy revealed what to expect next from BTC.
Why the Bitcoin Price is Crashing
In one X messageNobler revealed that USDT issuer Tether was liquidating some of its BTC holdings, contributing to the Bitcoin price crash. He noted that this was the first time they had sold directly from their company BTC reserve wallet. The expert added that things were not looking good for crypto.
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Data in the chain showed Tether moving 204 BTC from its wallet to the Bitfinex exchange, raising concerns of a sell-off. Tether is among a large number of entities believed to have recently dumped BTC, which was the cause of the Bitcoin price crash. The defunct crypto exchange Mount Gox also transferred 10,422 BTC, worth almost $740 million.
Furthermore, Bitcoin ETFs contributing to the massive BTC sell-off, with these funds seeing net outflows for twelve days. They recorded net outflows of $519 million yesterday SoSoValue data. During these twelve days, these funds also recorded net outflows of $733 million on May 27.
Meanwhile, it is worth noting that the Bitcoin price crash started earlier this week Michael Saylor’s strategy revealed in its SEC filing that it had sold 32 BTC. This was the first time the Bitcoin Treasury company sold BTC since 2022. This has raised concerns about what this could mean and how much more BTC the company could sell in the future.
The Bitcoin price has also crashed due to macro factors such as the US-Iran war, with a peace deal looking unlikely any time soon. BTC is also fighting for liquidity amid upcoming IPOs, such as Elon Musk’s SpaceX, which is expected to go public this year.
What’s next for BTC
In one X messagerevealed crypto analyst Chiefy, who had predicted the Bitcoin price crash to $67,000, what’s next for BTC. He stated that relief would come afterward, giving market participants false hope before falling even further behind. The analyst added that this is structurally one of the weakest setups BTC has seen this bear cycle.
The analyst’s accompanying chart showed that the Bitcoin price could still fall to $60,000, hitting the February low. Crypto analyst Tony repeated a similar sentiment, which foretold BTC could still fall to $60,000, although he expects a recovery in relief in the short term.
Related reading: Bitcoin trend that has lasted 15 years shows when to expect the bottom and when $400,000 will happen
At the time of writing, the Bitcoin price is trading around $66,700, down over 5% in the past 24 hours. facts from CoinMarketCap.
Featured image from Pixabay, chart from Tradingview.com