Last updated on August 18, 2023 5:28 am
The price of bitcoin fluctuated between $25,489.4 and $28,771.8 over the preceding twenty-four hours.
Why is Bitcoin dropping?
The downward movement reduced Bitcoin’s market cap to $537.6 billion, or 49.05% of the overall market value of cryptocurrencies. The market capitalization of Bitcoin peaked at $1,275.5 billion.
Since November 9, 2022, it has been the biggest percentage drop in a single day.
Bitcoin’s value has decreased, dropping 6.13% in the last seven days. In the twenty-four hours before the time of writing, Bitcoin transactions totaled $21.7 billion, or 50.16% of the total volume of all cryptocurrencies. In the last 7 days, it has fluctuated in price between $25,489.3574 and $29,689.0352.
Bitcoin’s current price is still 62.29% below its November all-time high of $68,990.63. Why is Bitcoin dropping?
When will BTC reach $150K?
According to investment research boutique Fundstrat, the price of bitcoin will exceed $150,000 by the end of 2024 unless the current series of spot-based bitcoin exchange-traded funds (ETFs) is approved by the United States.
Tom Lee, managing partner and head of research at Fundstrat, predicted that a set of successful bitcoin spot ETF applications would drive bitcoin supply-demand dynamics upward.
When questioned about why is bitcoin dropping and what the price of bitcoin might be at the close of the following year, Lee said:
If the Spot Bitcoin (ETF) gets approval, I believe demand for bitcoin will exceed daily supply, causing the price to hover above $150,000, possibly even hitting $180,000.
Lee said that Europe already has spot market BTC ETF, so this may only be the case until it is approved by the United States.
How Bitcoin ETF approval in USA will affect BTC Price?
Bloomberg Senior ETF Analyst Eric Balchunas estimates that 97.7% of the world’s trading volume in crypto-related ETFs currently takes place in the USA. Once the spot bitcoin ETF is approved, he claimed, this might reach 99.5%.
Even if the current ETF applications are denied, Lee still anticipates a major shift in price as a result of bitcoin’s upcoming halving event, which is scheduled to take place in April 2024.
The supply will decrease once more, forcing an increase in the clearing price. It won’t be six digits, though.
In June, Wall Street heavyweights Fidelity, Invesco, Wisdom Tree, and Valkyrie followed the world’s largest asset manager BlackRock in applying for a Bitcoin spot ETF with the SEC.
However, some of these firms may not learn their fate until sometime in 2024 as the SEC has up to 240 days to make a final decision on an application after commencing the review process.
The outcome of Grayscale’s appeal to convert its GBTC trust product into a Bitcoin spot ETF is however expected to come sooner rather than later.
Bloomberg ETF analysts Eric Balchunas and James Seyffart recently estimated that there’s a 65% chance of these Bitcoin spot ETFs being approved by the securities regulator — a significant increase from before BlackRock’s application.
When will 1 BTC = $100K ?
Other have tipped that a $100,000 Bitcoin price could come much sooner than expected, with Blockstream CEO Adam Back recently wagering that Bitcoin will notch the new price milestone the month before the halving event.
Opinion of Bears for BTC (Bitcoin) Why is Bitcoin dropping?
However, not everyone is inclined to agree. Jesse Myer, the co-founder of Bitcoin investment firm Onramp, explained on Aug. 15 that the market would only price in the changed reality 12–18 months post-halving.
Bitcoin won’t surge to $100k before the next halving
A tweet from Will Clemente (@WClementeIII), who adds to the conversation, observes that “Bitcoin holders who have held it for years are no longer underwater,” indicating a bullish attitude among expert investors in cryptocurrency.
Why Crypto Market is going down?
Due to expected regulatory changes in the US, the market value of all cryptocurrencies fell below $1.09 trillion over the past 24 hours, falling by 4.1%.
It dropped to this level for the first time in almost two months, forcing the price of Bitcoin to drop to $25,409 over the past 24 hours.
In addition, the unpredictability in the market may be a result of Binance’s decision to halt its payments section.