Cryptocurrencies under pressure: Bitcoin briefly falls below $60,000

That was the lowest level since the beginning of May. Most recently, Bitcoin was trading slightly above the psychologically important mark of $60,000. On a daily basis, losses amounted to almost $3,000 or 4.5 percent.

Ether, the second largest cryptocurrency by market value, also continued to decline. “The recent negative trend on the crypto market continues at the start of the week,” commented Timo Emden of Emden Research. The expert referred to profit-taking and the declining demand for exchange-traded spot ETFs from the USA. These had only been approved at the beginning of the year and had led to a strong influx of digital assets. The Bitcoin price subsequently rose to a record high of almost 74,000 dollars.

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“Investors are being shown in an impressive way the downside of the ETF investment vehicles that have been approved in the USA since the beginning of the year,” continued Emden. After the inflows, the outflows on the other side forced the downward pressure. There is currently little evidence of a sustainable countermovement.

“In view of the uncertainty about the future shape of US monetary policy, there is ultimately a lack of convinced market players,” added Emden. It is currently unclear when and to what extent the US Federal Reserve could loosen its monetary policy. This uncertainty is particularly affecting risky investments, which include crypto assets such as Bitcoin or Ether.

Downward trend began in mid-June

The market also expressed fears of a rapidly increasing supply of Bitcoin. The insolvency administrator of the Mt. Gox exchange, which failed about a decade ago, announced that repayments of Bitcoin and Bitcoin Cash would be made starting in July. These are stocks that have resurfaced after the spectacular bankruptcy.

According to Emden, investors are still on thin ice in terms of charts. A downward trend began in mid-June and has now intensified at the start of the week. In addition, the price of Bitcoin is currently well below the 21- and 50-day average lines, which describe the short- and medium-term trends. The much-watched 200-day line also provides support. It is considered a measure of long-term development.