HomeBitcoinWhat is causing the decrease in Bitcoin price today?

What is causing the decrease in Bitcoin price today?

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Reasons Behind Bitcoin’s Price Decline: Accumulation Trends and ETF Outflows

Bitcoin (BTC) price has taken a significant hit, dropping 23% from its all-time high of $73,835 on March 14 to a two-month low of $56,500 on May 1. This downtrend has been ongoing for almost 60 days, indicating a potential shift in market sentiment as traders continue to book profits.

One of the reasons for the decline in Bitcoin price is the decrease in accumulation by holders. Data from Glassnode shows that while Bitcoin issuance rate remains high, accumulation has not kept pace. This trend has been observed for the second time in the past few months, with the previous occurrence in March leading to a 17% correction in BTC price.

Additionally, Bitcoin ETF flows have turned negative again, with investors withdrawing capital from spot Bitcoin ETFs. Grayscale’s GBTC fund, which saw netflows after 78 days on May 3, was a major contributor to the outflows on May 7. Inflows into other Bitcoin ETFs have also slowed down, indicating a de-risking behavior among investors.

Overall, more than 47.42 million Bitcoin addresses are currently in profit, leading to sell-side pressure as traders take profits. This, combined with the negative ETF flows, has contributed to the recent decline in Bitcoin price.

It is important to note that this article does not contain investment advice or recommendations, and readers should conduct their own research before making any investment decisions.

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