Bitcoin Falls to 1-Month Low as Market Sentiment Turns Cautious

As of 11:44 a.m. on Monday in London, Bitcoin fell 4% to $61,153, marking its lowest point in over a month.

Bitcoin price today: The price of bitcoin fell on Monday as the world’s largest cryptocurrency continued to trade below the key level of $62,000.

Bitcoin dropped 4% to $61,153 as of 11:44 AM ET on Monday in London. Bitcoin fell to its lowest level in over a month.

The leading cryptocurrency by market value was last down around $600 from a seven-week high hit on Friday. However, the coin remained above a recent low of $58,649 hit on 23 May. Bitcoin’s market cap stood at around $1.2 trillion on Monday.

Despite the prevailing downturn, bitcoin open interest saw a slight uptick of 0.59%, with currentܞ trades valued at $19.1 billion.

“The crypto market is currently experiencing a downturn, leaving many individuals feeling confused and scared about their next steps. BTC is now approaching the critical level where many will give up this cycle. BTC is playing much the same role as gold did in the early days of banking. The current downfall is due to three major reasons such as minors selling btc to fuel their mining activities, Germany is selling 3b USD of bitcoin and Mt. Gox, the erstwhile crypto exchange announcing the bitcoin cash repayments in July,” said Avinash Shekhar, CoFounder & CEO, Pi42.

What’s behind bitcoin’s downturn?

Recent market sentiment suggests that investors are adopting a cautious approach, refraining from aggressive moves due to several factors that are tempering their risk appetite. These factors have not only impacted the price of bitcoin but have also overshadowed the prices of the entire cryptocurrency market.

Bitcoin’s recent performance has been largely influenced by uncertainty over Federal Reserve interest rate policies. Traders are keeping a close watch on potential interest rate increases amid continuous inflation concerns. The Fed’s upcoming decisions, particularly those influenced by economic indicators such as the PCE price index, are crucial for market sentiment.

“Bitcoin has been struggling to maintain crucial support levels of late due to some bearish conditions at play. With a steep decrease in high ticket transactions and ETF outflows exceeding inflows yet again, the market sentiment has dampened. Most importantly the strengthening of the dollar index in the backdrop of US PMI reaching an optimistic value of 54.6 has investors biased towards the dollar and moving away from riskier assets. There has also been an influx of profit taking especially from derivatives trades, further dampening investor confidence,” said Rajagopal Menon, VP, WazirX.

Another key contributing factor behind bitcoin’s downturn is ETF outflows. A notable withdrawal of $545 million from U.S. Spot Bitcoin ETFs signals a shift in investor sentiment towards digital assets.

News source：https://www.kdj.com/cryptocurrencies-news/articles/bitcoin-falls-month-low-market-sentiment-cautious.html

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