On the afternoon of the 17th, a Bitcoin price chart in US dollars was released by Investing.com. The leading virtual asset, Bitcoin, has surrendered all of its 30% gains from this year.
According to Coinbase on the 17th, Bitcoin was trading at 95,000 dollars per unit in the afternoon, which is approximately the same level as at the end of last year.
At the beginning of the year, Bitcoin hovered around the 100,000 dollar mark before dropping to the 70,000-80,000 dollar range in March and April. It then gained momentum thanks to the virtual asset policy of the Trump administration, surpassing an all-time high of 126,000 dollars last month on the 6th. However, it temporarily dipped to 93,081 dollars in the morning of the same day.
Bloomberg reported that “just a month after Bitcoin recorded its all-time high, the enthusiasm for the Trump administration’s support for virtual assets has faded, erasing the over 30% gain recorded since early this year.” Benjamin Cowen, founder of IntoTheCryptoverse, remarked, “A ‘death cross’ occurred in Bitcoin,” and added, “Historically, the occurrence of a death cross has marked a short-term low.” A death cross is a market phenomenon where a short-term moving average crosses below a long-term moving average, generally interpreted as a signal of a transition to a bearish market.
Matthew Hougan, Chief Investment Officer (CIO) of Bitwise Asset Management, told Bloomberg, “There’s a general risk-averse sentiment in the market,” noting that “virtual assets are the first to sense and respond by pulling back.”
In the past month, liquidity has dried up as major buyers, including institutional investors and ETFs, have withdrawn. Additionally, the recent weakness in tech stocks in the stock market has led to a retreat in risk appetite.
Jake Kenis, a senior analyst at blockchain data analysis firm Nansen, explained, “This sell-off is a result of profit-taking by long-term holders, institutional fund outflows, macroeconomic uncertainty, and the collapse of leveraged long positions,” adding, “It’s clear that the market is experiencing a temporary decline after a long period of sideways movement and volatility.”