Bitcoin price has fallen below $59,000, causing concern among investors and raising questions about the reasons behind this decline. Several key factors, including macroeconomic developments and market trends, are driving this sell-off.
A major factor contributing to Bitcoin’s price drop is a significant sell-off by a whale. According to Whale Alert, a large holder transferred 2,300 BTC, worth approximately $141.81 million, to Kraken before the recent downturn.
This massive asset movement raised alarm in the crypto community. Despite this, the whale still holds 18,141 BTC worth $1.07 billion. If this whale decides to sell more, it could put additional pressure on the Bitcoin price.
Investors are also cautious as they await important earnings reports from major technology companies. Nvidia, Salesforce, CrowdStrike and HP Inc. will soon release their second-quarter results. Nvidia’s report is due on August 28.
These gains are likely to influence market sentiment and potentially impact riskier assets like Bitcoin. Wolfe Research emphasizes that Nvidia’s performance could play a crucial role in shaping market expectations.
Currently, Bitcoin is trading at $59,427, down 6.59% on a 46% increase in trading volume of $41.62 billion. The cryptocurrency hit a low of $58,211 and a high of $63,210.80 in the last 24 hours.
Additionally, Bitcoin Futures open interest has dropped 7% to $31.09 billion and $26.35 million worth of Bitcoins have been liquidated in the last hour. Despite the downturn, some forecasts suggest that Bitcoin could bounce back to $65,000 if it breaks a key resistance level.
Also read: Bitwise Bitcoin ETF acquires Osprey Bitcoin Trust
