bitcoin (B T c) price declined another notch today to $37,365 after the bulls made an unsuccessful attempt to reclaim the $40,000 level. The renewed downturn comes when the stock market and commodities also pulled back as a result of Federal Reserve Chairman Jerome Powell’s comments on future interest rate hikes and concerns over rising inflation, which has led to Downfall for both bitcoin and gold.
data from Cointelegraph Bazaar Pro and trading view It shows that BTC price climbed from $38,200 in early Thursday trading to a high of $39,500 by noon and then dropped to lows of $37,365 as bears took control of the market.
Spot exchanges increased inflows
One signal provided prior to the bitcoin price drop on June 17 was increased inflows to spot exchanges, leading some analysts to speculate that traders who failed to cash in near the highs would seek to lock in profits. Taking advantage of the low high.
#bitcoin Here you can see the stark differences between the recent inflows into spot exchanges vs derivatives exchanges. There has been a big increase in the spot recently. One theory is that spot holders who did not sell the top are taking the opportunity to get out at lower highs. pic.twitter.com/6SOI2uXHk8
— tempting beef (@tempting_beef) June 17, 2021
Exchanges see net inflow of BTC as sell-off intensifies Noteworthy Bullishness and this selling pressure coupled with a lack of dip buyers kept bitcoin below $38,000.
While the recent BTC influx on exchanges points to a bearish short-term outlook, it is also worth noting that between 100 BTC and 10,000 BTC whale wallets are actually increased his holding by 90,000 BTC Over the last 25 days, suggesting a more positive long-term outlook.
Open interest in BTC options is on the rise
Another source is looking at open interest in BTC and Ether to get a better overview of how money is being deployed across the market (ETH) the option.
According to Delphi Digital, “open interest for BTC and ETH options has declined since mid-May,” but recently there has been a slight increase in options for BTC. This figure remains stable for Ether, “suggesting that traders are trying to position themselves for a BTC move.”
Delphi Digital also said that the recent price action for bitcoin and gold has revived discussions on the potential of each to operate as a “safe haven asset”, with investors viewing gold as the main inflation hedge. , which means “Rising inflation could negatively affect BTC sentiment.”
Given that both assets have reacted negatively to Powell’s comments, there is a chance that the correlation seen in 2019 between BTC and gold could revive the narrative that BTC has evolved into a safe haven asset. .
altcoin loses steam
The overall altcoin market went down on June 17th due to a lack of optimism on most of the coins.
Notable exceptions to the market stagnation include 34% growth for XinFin Network (XDC) and 32% growth for NuCyper (NU) following its partnership with Flair Finance, which was partnered with the Keep project to form the Keanu DAO. The recent merger has benefited.
As seen in the chart below, the announced merger between NuCyper and Keep was picked up by the NewsQuake™ service. Cointelegraph Bazaar Pro The VORTECS™ score rose to an all-time high of 74 on June 15th and thereafter on June 16th, which was about 15 hours before the altcoin rose 44%.
The total cryptocurrency market cap now stands at $1.568 trillion and bitcoin has a dominance rate of 45.1%.
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