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.

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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

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Alexander Stefanov

With over 8 years of experience in the cryptocurrency and blockchain industry, Alexander is a seasoned content creator and market analyst dedicated to making digital assets more accessible and understandable. He specializes in breaking down complex crypto trends, analyzing market movements, and producing insightful content aimed at educating both newcomers and seasoned investors. Alexander has built a reputation for delivering timely and accurate analysis, while keeping a close eye on regulatory developments, emerging technologies, and macroeconomic trends that shape the future of digital finance. His work is rooted in a passion for innovation and a firm belief that widespread education is key to accelerating global crypto adoption.