News - Bitcoin rate drops below 63,000 U.S. dollars

By Mike Hesp

Bitcoin rate drops below 63,000 U.S. dollars

Bitcoin's weakness also continues at the beginning of the week. With the fall below a key support zone, further selling by short-term holders is imminent.

The Bitcoin exchange rate was quoted at US$62,602 on Monday morning and falls 2.6 percent on a daily basis. This threatens BTC falling for the third week in a row. The ongoing correction is likely due, on the one hand, to Bitcoin miners selling BTC after the halving to cover their running costs. On-chain data show a reduction in mineral stocks by more than 30,000 BTC in recent weeks.

Moreover, Bitcoin ETFs launched in January are registering massive daily outflows. Recently, money flowed out of BTC investment products five days in a row.

Finally, Bitcoin sales by the Bundeskriminalamt (BKA) could also put pressure on the exchange rate. On-chain data of recent weeks showed that movements of the relevant wallets indicate the liquidation of a total of 50,000 BTC seized by the LKA Sachsen in January. This would represent a selling pressure of over US$3 billion.

With the recent price drop, Bitcoin now drops below the important US$64,230 mark. According to on-chain data from Glassnode relates to the Short-Term-Holder Cost-Basis. This indicates the average purchase price for short-term hodlers - that is, wallets holding Bitcoin for less than 155 days. The value is seen as an important frontier for the bull market. Below this value, short-term investors are at a loss, which could prompt them to liquidate their positions.

Therefore, if this boundary is not defended during the week, a deeper correction is imminent.

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