Nearly 2 million Bitcoin addresses are on the brink of hitting their breakeven point following the cryptocurrency’s latest price retracement. As Bitcoin hovers around the precarious levels of $69,380 and $67,350, the tension among investors is palpable, knowing that a dip below this threshold could lead to mass liquidations and further depress the crypto market.
Crypto analyst Ali Martinez underscores the gravity of the situation, pointing out approximately 1.97 million addresses that had previously bought a cumulative total of 964,000 BTC are now treading water, with their investments in danger of turning negative. The market has turned bearish, with Bitcoin’s price recently retracting to the $69,000 mark from highs over $71,500, amid reactionary sentiments to the U.S. jobs data release and speculations about the Federal Reserve’s interest rate cuts.
The crypto market within the last day alone has witnessed significant churn, with total liquidations soaring to nearly $65.95 million. Of these, a substantial $56.86 million originated from long positions, which suggests a growing bearish outlook among traders. With so much uncertainty, the critical question investors are grappling with is whether Bitcoin can sustain its value over $67,000. Should it dip under this price range, it could initiate another downward spiral, triggering widespread sell-offs and applying added pressure to an already fragile market.
However, there is a silver lining amid the brewing storm. Spot Bitcoin ETFs continue to attract investment, with inflows of $135 million recorded on June 7. Such interest can potentially offset sell-off pressures, stabilizing Bitcoin’s price. Furthermore, Global ETPs currently hold over 1 million BTC, hinting at a continuing vote of confidence from institutional investors. This significant holding could induce a supply shock, cushioning the market from severe downturns.
At the moment, Bitcoin’s price has declined by 3.52%, standing at $69,375.98, while the market capitalization has hit $1.36 trillion. Interestingly, the 24-hour trading volume has swelled by 12.57% to a robust $31.39 billion. Whether this indicates a transient trend or the beginning of a more profound shift remains to be seen. The cryptocurrency landscape is notoriously volatile, yet the resilience of Bitcoin under such conditions would be a testament to its enduring appeal to traders and investors alike.
