Bitcoin’s Price Plunge: Experts Warn of Further Decline to $50,000

The cryptocurrency market is reeling as Bitcoin’s price takes a sharp dive, with experts warning of a potential drop to $50,000. According to 10x Research, the downward spiral is linked to dwindling buy flows and accelerating sell flows.

Market Sentiment Shifts

The psychological $60,000 benchmark has been broken, marking a significant shift in market sentiment. Markus Thielen, an analyst at 10x Research, suggests that the downward spiral was foreseeable, stating: “Our data from early June already hinted at an overbought market ripe for correction.”

Bitcoin’s price takes a sharp dive

The sudden 5.44% fall in the Bitcoin price has substantially impacted investor sentiment and market liquidity, reflected in BTC’s $1.1 billion market capitalization and 57% increase in trading volume.

Investor Implications

The break below the $60,000 support level has significant implications for Bitcoin miners and spot Bitcoin ETF buyers. According to the 10x Research report, the price decline could accelerate as support gets broken and sellers scramble to find liquidity.

The sell-off coincides with the anticipated Mt. Gox repayments of $8.5 billion worth of BTC, which were set to begin in July. The report advises traders to prioritize risk management in preparation for continued volatility.

Long-term Holders Take Profits

According to a recent analysis from IT Tech, the downward trend is attributable to long-term holders cashing in on substantial profits. On July 3, the spent output profit ratio (SOPR) from long-term holders exceeded a value of 10, indicating that the BTC was sold for at least 10 times the initial purchase price.

Long-term holders take profits

The analysis suggests that long-term BTC holders, who typically retain their holdings for roughly five to seven years, have contributed to the selling pressure in the market.

Conclusion

The Bitcoin price expectations remain cautious, with experts warning of further decline to $50,000. As the market continues to fluctuate, investors are advised to prioritize risk management and stay vigilant.

Bitcoin price expectations remain cautious