Bitcoin has been on a downward spiral in recent days. Last month, on May 6th, Bitcoin traded above $82,000.
Today, the story is different: BTC has lost over $10,000 in value and is now trading at $71,500. One crypto analyst predicts more pain is on the way as interest in Bitcoin shifts to other opportunities in the marketplace.
Coin Bureau founder and crypto analyst Nic Puckrin says momentum is not on Bitcoin’s side this week, with total outflows from Bitcoin ETFs topping $2.8 billion, compounded by Michael Saylor, CEO of Strategy, dumping 32 BTC last week, putting further pressure on the price.
“What’s particularly surprising is that Bitcoin is falling even as the US stock market – driven by exuberance around AI – is continuing to hit new highs. This means Bitcoin is being driven more by crypto-specific sentiment, and this is close to rock bottom right now,” says Puckrin. “Having broken below the $73k support level, Bitcoin now needs to hold above $70k to avoid a more significant slide lower. A deal between the US and Iran would offer some relief, but it would likely not cause a major bounce at this point in the cycle.”
Gloomy Expectations for Bitcoin
The forthcoming SpaceX IPO, expected to be the largest offering in public markets history, is also putting a dent in BTC’s price. SpaceX is anticipated to go public next week, sucking the air out of the room.
“Given its size, it’s set to draw speculative capital away from other risky assets, and so the crypto market will likely suffer. We may be starting to see this play out already. All in all, it’s not a good setup for the Bitcoin price in the short term,” predicts Puckrin.