Bitcoin failed to build upward momentum following the launch of Hong Kong’s cryptocurrency regulatory regime on June 1. BTC price plunged 2%, extending Wednesday’s drop as Bitcoin ended the month down 10% for the first time this year.
Several factors including macroeconomic, technical and regulatory challenges are heavily impacting the crypto market, leading to a market-wide sell-off.
Bitcoin Price Drops as US Internal Revenue Service Accesses Coinbase User Trading Data
Whales and investors have offloaded and shifted their bitcoin and crypto holdings from Coinbase as a court ruling revealed that the US Internal Revenue Service (IRS) can access user trading data on Coinbase. Whales have offloaded and transferred over $1 billion worth of bitcoin from Coinbase in the past few days.
Additionally, the deteriorating crypto landscape and regulatory challenges caused open interest in BTCUSDT to plummet as traders were liquidated or closed their positions. The liquidation of long BTC positions continues to increase, leading to a significant price drop. The negative funding rates will potentially cause the bitcoin price to fall below $25,000.
Open bitcoin interest. Source: DecenTrader
Also Read: Crypto Market Sell-Off: Here’s Why Bitcoin and Ethereum Prices Are Falling Today
The US House of Representatives passed the Biden-McCarthy debt ceiling agreement, now it faces a vote in the US Senate ahead of the June 5 debt deadline. Some Senate members, such as Senator Bernie Sanders, are trying to reject the debt ceiling agreement. Meanwhile, Bank of Japan Governor Kazuo Ueda is proposing to raise interest rates as inflation continues to rise.
Meanwhile, a Federal Reserve official plans to take a pause in June and hike rates later amid the US economic slowdown. According to the CME FedWatch Tool, the probability of a break is 63%, up from last week.
The global stock market rose on Thursday on positive sentiment surrounding the June debt ceiling deal and the US Federal Reserve’s pause. US Dollar Index (DXY) remains above 104 putting selling pressure on bitcoin price.
BTC price is down 2% in the last 24 hours and it is currently at $26,900. The 24-hour low and high are $26,671 and $27,346, respectively. Additionally, trading volume has increased over the past 24 hours, indicating interest from traders.
Also Read: Binance CEO “CZ” on First Digital USD (FDUSD) Stablecoin Support on Exchange
Varinder has over 10 years of experience in the fintech sector, including over 5 years in blockchain, crypto and web3 developments. A technology enthusiast and analytical thinker, he has shared his knowledge of disruptive technologies in over 5,000 news, articles and articles. With CoinGape Media, Varinder believes in the enormous potential of these innovative future technologies. He is currently reporting on the latest updates and developments in the crypto industry.
The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication assumes no responsibility for your personal financial loss.
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