Bitcoin has taken a hit, dropping below $58,000 in the past day. Here are some reasons why:
CME Gap
Analysts believe that the “CME gap” played a role in the price decline. This gap refers to the difference between Bitcoin’s price on the Chicago Mercantile Exchange (CME) futures market when it closed on Friday and reopened on Monday. Traders filled this gap by selling Bitcoin, pushing the price down.
Selling Pressure
Other factors contributing to the decline include:
- Spot Bitcoin ETFs: Investors are pulling money out of these ETFs, forcing fund issuers to sell their Bitcoin holdings.
- German Government: The German government has been selling its Bitcoin holdings.
- Mt. Gox: Concerns about potential selling pressure from the defunct crypto exchange Mt. Gox, which is preparing to repay creditors with $9 billion worth of crypto.
Relief Bounce Ahead?
Despite the recent drop, analysts are optimistic that Bitcoin could rebound. The CME gap has been filled, and experts believe that this could trigger a price increase. Some analysts predict that Bitcoin could rise to $72,000 in the near future.
