Bitcoin (BTC) fell below $64,000 on June 21 for the first time in over a month. BTC fell from an opening price of $64,840 to an intraday low of $63,451, according to data from Cointelegraph Markets Pro and TradingView.
The last time Bitcoin price traded below $64,000 was on May 15. Ethereum (ETH) rose from a low of $61,299 to a high of $71,980 on May 21 due to expectations of approval of an exchange-traded fund (ETF). .
At the time of publication, the largest cryptocurrency by market capitalization was trading at $63,552, down 3.54% over the past 24 hours.
The broader cryptocurrency market cap also fell 3.24% to $2.33 trillion over the same period, with Ethereum (ETH) down 2.25% to $3,475.
Let’s take a look at some reasons why Bitcoin is leading the market in corrections.
Bitcoin ETF is pressuring BTC price
Investors’ risk-aversion sentiment is evident across spot Bitcoin ETFs, where investors have been withdrawing capital for several days.
On June 19, the U.S. spot Bitcoin ETF recorded its fifth consecutive day of outflows, bringing total withdrawals for the week to $900 million. This is the largest outflow activity since the end of April.
Ten publicly traded ETFs lost about $140 million on June 20, according to data from cryptocurrency research platform SoSoValue.
Grayscale’s GBTC, which has experienced most outflows since converting to ETFs on January 10, led the way with $53.1 million in outflows, followed by Fidelity’s FBTC with $51.1 million. VanEck’s ETF reported net outflows of $4 million, while Invesco and Galaxy Digital’s funds had net outflows of $2 million.
BlackRock’s IBIT, the largest ETF by holdings, was the only product to see total net inflows of $1.5 million. ARK Invest, Valkyrie, Franklin Templeton, WisdomTree and Hashdex’s other funds recorded zero flows.
Total volume for spot Bitcoin ETFs on June 20 was $1.16 billion, down from $1.7 billion on June 18. The market was closed on June 19 for a public holiday.
Declining network activity supports Bitcoin’s bearish trend
Another reason why Bitcoin prices continue to fall could be reduced demand due to reduced network activity.
According to data from Glassnode, daily active addresses on the Bitcoin network decreased from 971,789 on April 4 to 632,620 on June 20. This is a 35% decrease over the past 90 days.
Popular analyst Ali Martinez also observed a decline in activity on the Bitcoin blockchain. In a post on the X social network on June 21, he shared a Glassnode chart showing that Bitcoin exchange inflows have been trending downward over the past three months.
“Bitcoin is experiencing a slowdown in exchange-related on-chain activity, indicating declining investor interest in BTC and decreased network usage.”
A decrease in on-chain activity means less demand for BTC within the ecosystem and lower prices.
Bitcoin price loses key support level.
From a technical perspective, today’s decline in Bitcoin price is part of a broader correction that began after rejection at the $72,000 resistance level on June 7. During this decline, BTC lost key support levels, including the 50-day and 10-day indices. The moving averages (EMA) are currently at $66,724 and $66,594, respectively.
The 200-day EMA ($64,294) provided the last line of defense for Bitcoin.
At the time of publishing, BTC’s price is violating the support provided by the 200-day EMA and daily volume has increased by 15%, indicating that selling remains active.
On the downside, noteworthy key levels are $60,000 and $56,500 low.
This article does not contain investment advice or recommendations. All investment and trading activities involve risk and readers should conduct their own research when making any decisions.