Bitcoin's price recently dropped to a seven-week low of $59,700, causing significant liquidations in leveraged long BTC futures. A total of $153 million in long positions were liquidated, shifting the market sentiment to neutral after a five-week bullish trend. This price movement, influenced by macroeconomic factors and anticipated sell-offs, has raised concerns among traders.
Traders are wary of potential sell-offs from the Mt. Gox bankruptcy estate and the German government's seized Bitcoin. The Mt. Gox trustee announced the release of a portion of 141,686 BTC starting in July 2024. Additionally, the German government recently moved 6,500 BTC, sparking speculation of a large-scale sell-off.
Despite potential interest rate cuts in the U.S. later this year, traders remain cautious due to the approaching U.S. presidential elections and upcoming inflation data. The U.S. Personal Consumption Expenditures (PCE) inflation index, expected on June 29, will be closely watched.
Bitcoin derivatives metrics indicate weakened conditions. The BTC futures premium dropped to 8% on June 22, below the 10% threshold for bullish sentiment. Furthermore, the put-to-call ratio in Bitcoin options reached 0.75, reflecting increased demand for protective puts.
Disclaimer: Please note that the information provided in this article is based on the referenced research articles. It is essential to conduct further research and analysis before making any investment decisions. The cryptocurrency market is highly volatile, and investors should exercise caution and consult with financial professionals before engaging in cryptocurrency trading or investment activities.
