Bitcoin fell below $70,000 for the first time in nearly two months
The price of Bitcoin fell below the $70,000 mark for the first time since early April. The cryptocurrency market was affected by geopolitical tensions between the U.S. and Iran, as well as the sale of some assets by the largest corporate holder of Bitcoin, Strategy Inc.
During morning trading in Europe, the price of Bitcoin fell by 2.4% to $69,660, its lowest level since April 8.
The decline affected more than just Bitcoin. Ethereum, Solana, and a number of other popular cryptocurrencies also saw declines, indicating a general deterioration in investor sentiment.
According to Caroline Moron, co-founder of Orbit Markets, several negative factors simultaneously impacted the market.
“Geopolitical uncertainty, combined with concerns about Strategy’s financial outlook, had a significant impact on Bitcoin,” she noted.
Additional pressure on the market was caused by a decision from Strategy, a company led by American entrepreneur Michael Saylor. The company reported its first sale of Bitcoin since late 2022, offloading approximately $2.5 million worth of the cryptocurrency.
For investors, this move came as a surprise, as Strategy had long adhered to a strategy of accumulating Bitcoin and was one of the world’s largest buyers of the cryptocurrency.
Another negative factor was the state of the exchange-traded fund market.
U.S. spot Bitcoin ETFs recorded net outflows for a record 11 consecutive trading days. During this period, investors withdrew nearly $3.5 billion from the funds, which intensified pressure on the cryptocurrency’s price.
Experts warn that a further consolidation of the price below an important psychological level could signal a shift in the market trend.
“A confirmed daily or weekly close below the $70,000 mark would signal a structural shift, not just a reaction to the news,” emphasized Sean McNulty, Head of Derivatives Trading for the Asia-Pacific region at FalconX.
Analysts note that in the coming days, the key factors for the crypto market will remain the geopolitical situation in the Middle East, the behavior of large institutional investors, and the dynamics of capital flows into Bitcoin ETFs.
This was reported by Bloomberg.
On Monday, May 4, the price of Bitcoin rose above the $80,000 mark for the first time since January 31. The cryptocurrency rose 2.1% to reach $80,594. According to analysts, breaking through this level could support further growth across the entire crypto asset market.
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