Bitcoin Price Drops Below $66,000 - What's the Reason?
Bitcoin (BTC) price continues to struggle to break the $67,000 level. The value of the asset even fell below $66,000 in the last hour. What caused this?
Bitcoin miners are now under considerable pressure after the recent FOMC meeting , as many of them were forced to liquidate their positions in this crisis.
This mass capitulation outlines the handicaps that stand in the way recovery of Bitcoin. In contrast to the strong performance seen in equity markets, the price of Bitcoin remains at a standstill.
The main reason for this is that miners are experiencing severe difficulties after the halving that took place in April, which ultimately led to many sales leading to increased operating costs and reduced rewards, thus keeping the price of Bitcoin low.
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Extremely bullish Bitcoin price forecast from BernsteinAlso, FlowBank, which has ties to Binance, went bankrupt, thus complicating things further. This adds more uncertainty to the dynamics of the Bitcoin market.
The market is expected to remain relatively calm with low volatility and no immediate catalysts on the horizon. SEC Chairman Gary Gensler hinted about the possibility of spot ETH ETF approval by the summer, but such news cannot affect BTC in the short term.
The merchants of Ethereum they could find opportunities during this quiet period. Having more volatility than BTC, taking into account the anticipation of spot ETF approval, it may be a strategic time to accumulate ETH.
At the time of writing, Bitcoin is trading at $65,850 after a 1.4% drop in the last hour.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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