The price of Bitcoin has dropped below the $59k price amid $155.25 million in liquidations across the crypto market.
According to on-chain analytics platform, the price decline is reported to be spurred after institutional investors halted their accumulation of stablecoins over the past two days.
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“Institutions seem to have temporarily stopped buying, and the price of $BTC dropped 4.5% today! We noticed that institutions stopped receiving $USDT from #TetherTreasury and transferring it to exchanges 2 days ago”.
Data from CoinGecko revealed that the broader crypto market declined by 4.32% over the past 24 hours, reducing its total value to $2.05 trillion. After holding above the $60,000 level for four consecutive days, Bitcoin fell below this threshold on Aug. 11, 2024, dipping to $58,234 as of the time of writing this report. Ethereum (ETH) also saw a decline, dropping to $2,527 after peaking at $2,711 earlier. At the time of writing, ETH was trading at $2,583.
Bitcoin price decline is coming after the crypto asset last week resumed its upward rally after experiencing a massive decline due to a global market sell-off. Bitcoin led the liquidations with $41.31 million, followed closely by Ethereum, which saw $39.53 million in liquidations.
As the crypto market conditions remain volatile, with the U.S. presidential elections in the corner, and a looming threat of recession, the BTC price will be shaken to the limit. However, the bottom formation at $50K promises solid support with a trendline confluence.
Despite recent fluctuations in the cryptocurrency market, several analysts have maintained their bullish stance on the price of crypto assets. Michael Saylor, executive chairman of MicroStrategy, has expressed optimism about Bitcoin’s future.
At the Bitcoin 2024 conference, he projected that Bitcoin would continue to surge, with the price reaching $13 million by 2045. Saylor believes that Bitcoin has “economic immortality” because it doesn’t degrade like physical assets and can address economic challenges due to its permanent and unchangeable nature. His optimistic projections have positively impacted BTC’s price, fueling investors’ enthusiasm.
Also, analysts from Grayscale Research predict potential price increases in the coming months. They believe that broader crypto assets valuations could recover if the U.S. economy manages to achieve a “soft landing” and avert a recession, with Bitcoin possibly approaching its all-time high later in the year.
Notably, this year, institutional investors have increased their appetite in the market driving up sentiments. The launch of Bitcoin ETFs by the United States Securities and Exchange Commission (SEC) has led to major investments within the industry.