Sell-Offs by Major Governments
One key factor behind Bitcoin’s decline has been large sell-offs by governments. The German government recently sold around 2,786 BTC, while the US government has also moved 4,000 BTC from its wallets to Coinbase. These transfers suggest that these coins are likely to be sold, as centralized exchanges like Coinbase offer more liquidity.
Return of Demand
Despite the downtrend, there are signs that demand is returning to the market. Spot Bitcoin ETFs have seen seven consecutive days of inflows, with over $50 million entering the market in the past two days.
Profitability Levels
The profitability margin for Bitcoin investors has dropped, indicating that investors are less likely to sell their holdings. This gives demand time to build up and potentially lead to a price recovery.
Current Support Level
As of now, Bitcoin is holding steady at the $61,000 support level. However, if sell-offs resume, the price could drop to $60,000 soon.
