Bitcoin Price Prediction after 4% Drop below Key $70,000 Level
Bitcoin fell quickly Tuesday morning and is now down more than 11% over the last month as the bears take over.
Quick overview
- Bitcoin has fallen 3.94% to $68,709, slipping below the critical $70,000 mark amid extreme market fear.
- The cryptocurrency has lost 11% of its value over the past month, despite the stock market reaching new highs.
- Factors such as rising inflation at 3.8% and geopolitical tensions are contributing to Bitcoin's decline.
- Short-term holders are selling at a loss and shifting to other cryptocurrencies like Zcash and Toncoin.
The cryptocurrency market is experiencing extreme fear as Bitcoin (BTC) falls 3.94% on Tuesday and slips below the psychologically important $70,000 mark.
Bitcoin is now down to $68,709 (BTC/USD) as market sentiment sours and investors pull away from the struggling coin. The BTC price was holding near $73,800 on Sunday after weeks of downward trajectory from an impressive early May high of $82,499, but it has since slipped from there.
BTC/USDThe writing was on the wall for the BTC rate this week, though, and investors left in droves as they watched the price fall further and further with each day. Elevated oil prices and rising inflation kept Bitcoin back from reclaiming lost ground last week, and even fresh highs for the stock market indices could not stop bitcoins hemorrhaging from investor wallets this week.
Bitcoin in Selling Phase
It is obvious from the current trajectory that the crypto market bears have control of Bitcoin for now, but for how much longer is the driving question. The coin has lost 11% of its value over the past month, and yet at the same time, the stock market is reaching new highs. This indicates that Bitcoin and even the wider crypto market are only marginally influenced for now by what the stock market is doing.
What factors are driving Bitcoin down right now? The coin is suffering from the latest inflation reading, which came in at 3.8%, and high inflation often pushes investor spending down as investors scramble to save money on unnecessary expenses.
Bitcoin is also under severe selling pressure due to the conflict in the Middle East between Iran, Israel, and the United States. That war forced oil prices higher, and the change there has had the same effect on Bitcoin investors as rising inflation. With commodities like oil and gas priced higher, investors have less discretionary income to spend.
Short-term Bitcoin holders are now selling at a loss, stepping away from the market or shifting over to more profitable and promising cryptocurrency tokens. Zcash (ZEC) and Toncoin (TON) are up by 6% and 5% respectively, so that could be where some of those former Bitcoin holders are moving.
Bitcoin has been losing ground for weeks, and until it starts to make some upward progress, market sentiment is likely to remain in the area of extreme fear. The Bitcoin price is back to where it was two months ago, under $70K and struggling to move higher.
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