Bitcoin Price Slides Below $68,000 as Outflows Hit Spot ETFs

Bitcoin (BTC) has extended its recent decline, falling below $68,000 for the first time since early June.

TL;DR

• Bitcoin is currently trading around $67,350, down over 8% from its recent high near $72,000.
• The decline is likely due to a combination of factors, including reduced investor demand, ETF outflows, and miner selling.
• The upcoming FOMC meeting and CPI data are adding to market volatility.
• Analysts are divided on Bitcoin’s short-term prospects, with some predicting further drops and others anticipating a potential rebound.

This drop comes amidst a confluence of factors, including:

Weakening Demand

Retail investor demand for Bitcoin has dropped to its lowest level in five months, potentially due to concerns about inflation and interest rates.

ETF Outflows

U.S. spot Bitcoin exchange-traded funds (ETFs) experienced their first outflows in weeks, snapping a record-breaking streak of inflows. This suggests institutional investors may be taking profits or adopting a wait-and-see approach.

Miner Selling

On-chain indicators point towards aggressive selling by Bitcoin miners, potentially due to concerns over profitability or a need for cash.

Macroeconomic Uncertainty

The upcoming Federal Open Market Committee (FOMC) meeting and Consumer Price Index (CPI) data release are adding to market uncertainty, causing investors to pull back from riskier assets like Bitcoin.

Bitcoin Price Predictions by Analysts

Analysts are divided on Bitcoin’s near-term future. Some, like Willy Woo, believe further liquidations could push the price down to $62,500 to clear out speculative positions. Others, like Axel Adler, point to historical trends where a similar drop in retail demand preceded a significant Bitcoin surge.

ABOUT THE AUTHOR See More

Arslan Butt

Index & Commodity Analyst

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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