The recent drop in Bitcoin price has fueled market concerns as the cryptocurrency has fallen below $59,000. The sudden free fall in BTC price has prompted investors to look for possible reasons behind the decline. It appears that there are a number of factors behind the recent sell-off, including macroeconomic concerns and other market trends.
So let’s take a quick look at the possible reasons behind the recent decline in BTC price.
Why is the Bitcoin price falling today?
The recent sell-off was triggered by a massive dump by a whale on one of the leading crypto exchanges. Moreover, recent reports suggest that investors are holding back from big gains that are likely to pave the way for the US stock market going forward.
Traders wait for Nvidia and other earnings figures
Investors appear to be taking a break this week before major technology companies, including chipmaker NVIDIA, release their second-quarter fiscal 2025 earnings. The chipmaker is expected to release its second-quarter fiscal 2025 financial results on August 28 after the market closes. In addition, other major technology companies such as Salesforce, CrowdStrike and HP Inc. are also set to announce their earnings tomorrow.
However, investors seem to be looking for more clarity before investing in riskier assets like Bitcoin or the entire crypto market. A recent CNBC report citing Wolfe Research said that Nvidia’s earnings will play a crucial role in market sentiment this week.
US PCE inflation data influences BTC price
Traders are also waiting for the US PCE data to gauge the latest inflationary pressures in the country. Although bets on a possible rate cut by the US Federal Reserve are rising, especially after Jerome Powell’s speech last week, investors will be closely watching the upcoming economic numbers.
The Fed chairman hinted that interest rates would be more dovish going forward. However, he also said that the central bank would evaluate future economic data when deciding on its future stance. However, if the US PCE inflation numbers turn out to be higher than expected, this could dampen sentiment in the broader financial market.
In addition, the US jobs data scheduled for September 6 will also play a key role in deciding the Fed’s next move regarding its interest rate plans. However, according to the CME FedWatch tool, there is a 66% probability that the central bank will cut interest rates by 25 basis points at its September meeting.
Whale waste causes concern
A recent report by Whale Alert showed that a whale identified by the wallet address “bc1qc….e3gvh” had transferred 2,300 BTC worth $141.81 million to Kraken before the BTC crash. According to the Arkham Intelligence report, the whale still holds 18,141K BTC worth $1.07 billion.
Considering that if the whale decides to book profits, it could put tremendous pressure on the cryptocurrency. In particular, the recent surge in the cryptocurrency price to nearly $65,000 has helped many investors book profits, especially after the volatile trading over the past few days.
BTC price falls below $59,000
At the time of writing, BTC price was down 6.59% at $58,893, while trading volume was up 30% at $37.30 billion. In the last hour, the cryptocurrency has hit a low of $58,116 and a 24-hour high of $63,210.80.
Meanwhile, BTC futures open interest (OI) has fallen by over 7% to $31.09 billion in the past 24 hours, with a decline of around 3% in the last hour. Also, the flagship cryptocurrency faced liquidations of $26.35 million in the last hour, CoinGlass data shows. In a 24-hour period, the entire crypto market saw liquidations of $312.94 million.
However, despite the recent downturn, a recent Bitcoin price prediction suggests that the cryptocurrency could soon reach $65,000 if it breaks a key resistance level.
Roberto Castro
A seasoned professional with three years of experience in the financial market, Rupam has honed his skills as a meticulous research analyst and astute journalist. He finds joy in exploring the dynamic nuances of the financial landscape. Rupam currently works as an editor at Coingape and his expertise goes beyond conventional boundaries. His contributions include breaking news, diving into AI-related developments, providing real-time updates on the crypto market, and presenting insightful business news. Rupam’s journey is marked by a passion for decoding the intricacies of the financial world and delivering impactful stories that resonate with a diverse audience.
Disclaimer: The content presented may contain the personal opinion of the author and is subject to market conditions. Conduct market research before investing in cryptocurrencies. The author or publication assumes no responsibility for your personal financial loss.
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