On June 19 the price of the leading cryptocurrency slid to $62,000 — over the day the asset lost about 3%. Ethereum fell below $1,700.
The correction is happening amid the emergence of fresh uncertainty around the situation in the Middle East. US Vice President JD Vance postponed a trip to Switzerland that had been planned as part of signing an agreement with Iran.
In addition, Israel is hindering a ceasefire. The IDF struck several targets in southern Lebanon. Nevertheless, the decline in oil prices continues, and popular grades fell in price all week.
Over the past day the volume of liquidations on the crypto market reached $460 million, the bulk of which fell on longs.
Pressure is also being exerted by ongoing outflows from crypto ETFs. The negative trend in bitcoin funds has continued since mid-May with rare, insignificant inflows. During the last trading session, on June 18, investors withdrew $90 million from the products.
The crypto Fear and Greed Index fell to 14 points, signaling "extreme fear."
Analysts' assessments
CryptoQuant contributor Amr Taha pointed to a synchronized decline in bitcoin inflows to Binance and Coinbase from mid-sized investors (holding from 100 BTC to 1,000 BTC).
"The simultaneous decline is important, because inflows of funds to exchanges are often interpreted as a sign of potential selling or profit-taking. When investors move BTC to exchanges, the market usually watches for possible pressure from sellers," the expert explained.
Inflows to Binance and Coinbase fell to levels seen at the end of February, while the Coinbase Prime metric dropped to its early-April low.
This makes the latest decline more positive for bitcoin's short-term prospects, Taha believes.
Technical analyst Axel Adler Jr. noted that the leading cryptocurrency is still holding the resistance level near $58,000.
However, in the expert's opinion, the real problem lies elsewhere — no new capital is coming into the market:
"The inflow of new investors has turned negative, around -$1.2 billion. Bitcoin is now in the hands of old investors rather than enjoying new demand."
As a reminder, QCP Capital said that the agreement between the US and Iran reduced the risks of problems in global energy, yet bitcoin still shows weakness because of fears of further sales by Strategy.
Source: ForkLog
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