Bitcoin High Despite Recent Bear Trend

Bitcoin (BTC) is down today by 2.36% to $61,914 (BTC/USD), but the coin has gained nearly 5% over the last week. This is ahead of new jobless data as well as a consumer consumption report that are coming this week.

The token has been staying close to $60K for weeks now, and even when it takes a sharp downward turn like it did recently and hit $58K, the coin manages to bounce back.  

 

Bitcoin remains overall elevated but is also demonstrating the volatility of the market. It is uncertain when Bitcoin would be expected to hit a new high, as the coin has not managed to do that in months. Despite early predictions this year for Bitcoin to reach $80k and higher, the coin has pulled back around $60,000 and has had trouble breaking away from there.

Less Crypto in Exchanges

Right now, the number of crypto tokens being stored in exchanges is at a record low. Since the beginning of the year, more than $20.8 billion in bitcoins has been taken out of exchanges and is now held in private accounts. That is a massive amount of Bitcoin that has been withdrawn, and it is leaving exchanges with much less than they normally have in reserve.

The cryptocurrency drought is further heightened by the lack of mining going on right now. A number of countries have pushed miners out or made it very hard for them to operate, namely China and Russia. In addition, the Bitcoin halving event made it twice as hard to mine bitcoins as before, slowing down the production of Bitcoin.

All of this could help increase Bitcoin’s value over time. As the token becomes scarcer, it could increase in value, theoretically. That was what was supposed to happen following the halving, but that has not been the reality so far. 

 

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ABOUT THE AUTHOR See More
Timothy St. John
Timothy St. John
Financial Writer - European & US Desks
Timothy St John is a seasoned financial analyst and writer, catering to the dynamic landscapes of the US and European markets. Boasting over a decade of extensive freelance writing experience, he has made significant contributions to reputable platforms such as Yahoo!Finance, business.com: Expert Business Advice, Tips, and Resources - Business.com, and numerous others. Timothy's expertise lies in in-depth research and comprehensive coverage of stock and cryptocurrency movements, coupled with a keen understanding of the economic factors influencing currency dynamics. Timothy majored in English at East Tennessee State University, and you can find him on LinkedIn.
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