Bitcoin price dropped another notch around $37,000 after a failed attempt by bulls to retake the $40,000

By Selena On Jun 18, 2021

Bitcoin price continues to drop to below $38,000 due to bad news from the market. In it, as AZCoin News reported, the World Bank’s refusal to help El Salvador enforce the Bitcoin law is also one of the reasons. In addition, this two-day decline was also the result of comments from Federal Reserve Chairman Jerome Powell regarding future rate hikes and concerns about rising inflation.

BTC/USD 4-hour chart | Source: TradingView

Bitcoin price continues to fall below $38,000 following a two-day sell-off in the wake of the Fed policy update

In the last 24 hours, Bitcoin’s highest trading volume was at $39,535 and the lowest was at $37,403 as bears took control of the market. Data from Coinmarketcap shows that the amount of Bitcoin traded at about $ 36.9 billion, the market capitalization recorded at $ 711.5 billion.

Accordingly, the signal of a decrease is also quite clear when the inflows to spot exchanges increased to yesterday.

A contrast between the recent inflows into spot exchanges vs derivative exchanges | Source: CryptoQuant

Looking at the two charts above, you can see quite a contrast between the recent inflows into spot exchanges vs derivative exchanges. The derivative exchanges see consistent inflows as price declined in May, possibly to cover margin calls. However, there was a big increase into the spot recently. One theory is that spot holders who didn’t sell the top are taking the opportunity to get out on a lower high.

Another view for a better overview of how funds are being deployed in the market is to look at the open interest in BTC and ETH options.

Delphi Digital stated:

“The open interest for BTC and ETH options have been in decline since mid-May, but there has been a slight increase in the options open interest for BTC recently. This figure has remained stagnant for Ether. It’s indicating traders are trying to position themselves for a BTC move instead.”

In another development, some argue that a bearish signal is present after the June BTC futures trade below spot exchange pricing. Among them, there is a phenomenon called backwardation going on in Bitcoin futures trading, mainly the June contract, which expires on June 25. Whenever this indicator fades or turns negative, this is a warning sign. red motion. This situation is called a retracement and shows a bearish sentiment.

However, that is just the opinion of some people. There is currently no sign of excessive leverage from shorts. Therefore, the lack of interest in the June contract by buyers does not accurately reflect the overall market sentiment. If traders are indeed bearish, both long-term futures and perpetual will show this trend.

In addition, the U.S. stock futures inch up slightly. Futures for the Dow Jones Industrial Average were up 0.08%. Futures for the S&P 500 ticked up 0.13%, while futures for the Nasdaq-100 climbed 0.21%.

Source: Investing

During the regular session, the Dow Jones Industrial Average fell 210.22 points, or 0.62%, to 33,823.45. The S&P 500 fell 0.04% to 4,221.86. The Nasdaq Composite dropped 0.79%. Over the past seven days, the Dow has lost 1.9%, the S&P 500 has fallen 0.6%. The Nasdaq has achieved 0.65% on the week.

The altcoin market trended down as the lack of optimism weighed heavily on most tokens

Almost the top 10 and top 20 cryptocurrency on CoinMarketCap have shown a decrease of 2% – 5% in the past 24 hours. In which, Chainlink (LINK) and Solana (SOL) recorded the highest decrease of 5% and 4% respectively.

Theta (THETA) recorded a gain of more than 6% on the day. The reason probably comes from Theta announcing extending development compatibility with Ethereum with some new features. Besides, the $ 500 million asset manager joins Theta Network as Enterprise Validator is also a good news.

Theta extending development compatibility with Ethereum with a new RPC API suite, Web3 tools, Metamask integration and more:https://t.co/pVqeh3fX15 pic.twitter.com/4S93gcfxmH

— Theta Network (@Theta_Network) June 17, 2021

The overall cryptocurrency market cap now stands at $1.568 trillion and the Bitcoin Dominance rate is 45.1%.

You can see the Bitcoin price here.

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