The total cryptocurrency market cap has been shrinking over the past few days, falling to around $2.57 trillion. Bitcoin (BTC), the leading cryptocurrency, saw its price dip below $67,000 again in the past 24 hours. The coin slipped about 1.2 percent to trade at around $66,762 on Friday during the early Asian session.
Bitcoin’s bullish sentiment has significantly weakened after the US Federal Reserve signaled only one interest rate cut later this year. On-chain data from CryptoQuant shows that Bitcoin miners have increased their selling rate, suggesting a possible incoming capitulation.
Jurrien Timmer, the director of global macro at Fidelity Investments, attributes the slowed bullish outlook to a growing divergence between Bitcoin’s price and its adoption rate. Despite this, Timmer emphasizes that Bitcoin still has immense potential as a store of value, likening it to “exponential Gold.”
US spot Bitcoin ETFs have seen net cash outflows over the past week, with about $226 million liquidated on Thursday alone. As Bitcoin struggles to rally above the resistance level of $72,000, on-chain data from Santiment shows that the dip narrative has gained traction on social media platforms.
Veteran trader Peter Brandt has cautioned crypto traders about several bearish indicators. He pointed to Bitcoin’s exponential decline relative to prior bull cycles and warned that a weekly close below $66,000 could push Bitcoin towards $60,000. If the $60,000 level fails to hold, Brandt expects the price to drop to $48,000 before finding support for a potential recovery.
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