Bitcoin (BTC) price has dropped by approximately 3.25% in the last 24 hours to reach $3,690 on June 8th. Despite this decline, the BTC/USD pair is outperforming the broader crypto market, which has seen a 3.75% decrease in valuation during the same period. The top catalysts behind Bitcoin’s lower prices include better-than-expected job data in the United States and a decrease in the BTC supply held by its richest whales.
The price decline in Bitcoin today is largely attributed to a strong U.S. employment report for May. Nonfarm payrolls surged by 272,000 in the past month, surpassing all estimates in Bloomberg’s economist survey. This led to a rise in Treasury yields, with both two-year and 10-year yields increasing by approximately 12 basis points. As a result, stocks declined and the dollar strengthened, impacting investor risk appetite for assets like Bitcoin.
One interesting factor influencing Bitcoin’s price decline is the slight reduction in the BTC supply held by its richest holders. The Bitcoin supply held by whales with at least 100,000 BTC has decreased by 0.2% in the last 48 hours. It is unclear whether these investors are redistributing their holdings or cashing out altogether. On the other hand, lower Bitcoin supply cohorts have been accumulating in recent months, indicating a shift in the distribution of Bitcoin holdings.
From a technical perspective, Bitcoin has been struggling to break past the $70,000 resistance level since mid-March. This level is significant as it serves as the neckline of Bitcoin’s inverse-head-and-shoulders (IH&S) pattern. If Bitcoin is able to break above this level, it could potentially reach over $90,000 as its primary upside target for July. However, failing to break past the neckline could result in a pullback towards the 50-day exponential moving average at around $66,740.
In conclusion, Bitcoin’s price decline today can be attributed to a combination of factors including strong U.S. job data, rising bond yields, and a slight depletion in the BTC supply held by whales. While this may lead to short-term price fluctuations, it is important for investors to conduct their own research and make informed decisions when it comes to investing in cryptocurrencies. This article serves as an informative piece and does not offer investment advice or recommendations.
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