Bitcoin Dropped Below $60,000 Again – What Could be the Reason?

Bitcoin (BTC) saw a significant drop over the weekend, with the token price trying to get back above $60,000.

According to “RLinda,” a crypto trading expert at TradingView, this decline is part of a broader consolidation phase lasting five months.

Bitcoin‘ s losses over the weekend can be attributed to a combination of economic data, market sentiment, significant ETF outflows and the failure to overcome the critical $70,000 resistance level

Macroeconomic indicators played a crucial role in the price decline. The U.S. nonfarm payrolls report released on August 2 showed an increase in unemployment from 4% to 4.3% and rising inflation, which created negative market sentiment. The weak jobs report heightened fears of a recession, leading to a sell-off in Bitcoin.

Additionally, Farside data reveals significant outflows from Bitcoin ETFs, with $237.4 million in outflows on August 2 and $80.4 million for the week.

Additionally, the bankruptcy restructuring of Genesis Trading and the distribution of $4 billion in assets may have contributed to the market’s decline, worsening market sentiment due to emerging concerns of a potential sell-off.

At the time of writing, Bitcoin is trading at $59,700, reflecting a decline of 4% in the last 24 hours and over 11% in the last 7 days

.