Why is crypto crashing? What’s the excuse this time? We often see people saying BTC will drop to 58k soon. Will it really dip that low?
Two weeks ago, Bitcoin kissed $70,000 before slipping by roughly -7% and has been treading water for three months, stuck at the same price levels.
At this point alts have come down about 40-90%.
Although it wasn't as violent as during the covid crash, the end result has been roughly the same for many coins.We're just doing everything slower this time around.
Thing is, back then alts had barely moved up until that point.… pic.twitter.com/xSxzme3IlH
— Daan Crypto Trades (@DaanCrypto) June 18, 2024
99Bitcoins analysts believe we’re in for extreme dumps this summer, and it isn’t because there aren’t enough greater fools for Bitcoin to go to $100,000 or whatever platitude r/buttcoin is using.
We want to explain why crypto is crashing in easy caveman terms.
So here’s the answer to why crypto is crashing – and three solid reasons why this is not something to worry about.
This Single Reason to ‘Why is Crypto Crashing?’
Historically, June is not a good month for crypto for whatever reason (probably overseas whales selling to go out on vacation or something)
Moreover, the recent halving event on April 19 put Bitcoin in a “sell the news” phase, exacerbated by the Bitcoin ETFs sending BTC up weeks before the event.
We are two months after the Bitcoin Halving
Current price action is comparable to previous 60-day Post-Halving periods$BTC #Crypto #Bitcoin pic.twitter.com/AWZxx5A5bc
— Rekt Capital (@rektcapital) June 17, 2024
This is a slow-motion dump. There’s no serious panic yet.
But before any meaningful upside occurs again, all the levered longs are being washed out by the sustained crashes. This happened in 2020 and will happen again.
Another key reason for Bitcoin’s flatline is the dwindling enthusiasm for spot Bitcoin ETFs. Approved by the SEC in January, these funds ballooned to over $53 billion, peaking at $55.3 billion in March. Now they’re bleeding cash—$580.6 million walked out the door last week alone, per CoinGlass data.
Also to note Bitcoin Miner Reserves just hit its lowest point this year, with 1.81 million BTC sitting in miner wallets—roughly $125 billion worth. This drop usually means miners are offloading coins, likely through OTC markets or Peer-to-Peer sales, sidestepping exchange.
All that said, we’re predicting things will look better by September. Here’s why.
1. The Crypto Presidential Election
Can we call this the crypto presidential election? We’re going to call it that.
The upcoming U.S. election is stirring the pot for this crash even more. Both parties are chasing crypto supporters, but Trump has anointed himself the ‘crypto president.’ During a sit-down with Bitcoin miners, he vowed to “stop Joe Biden’s crusade to crush crypto.”
Despite his strong stance, polls show Trump leading Biden by a razor-thin margin of just 1.1%, creating an uncertain political backdrop.
Regardless, with Biden’s campaign now taking crypto donations, this signals the first presidential election where crypto will most likely steps into the debate spotlight (just don’t tell Trump his coin is down 40+%).
2. Fed Rate Cuts Will Begin in September
Adding to a bull case for crypto toward the end of summer is the U.S. dollar spiraling down as the Fed readies to slash interest rates after two years in the inflation trenches.
“Central banks around the world have already started to cut rates, which suggests a broader trend towards monetary easing,” analysts at Bitfinex commented.
Moreover, according to a recent Reuters poll, the Federal Reserve is set to cut interest rates in September and once more this year. Forecasters mostly agree, though some see the possibility of just one cut or none.
3. Bitcoin’s TA Isn’t in Doomsday Mode Yet
(BTCUSDT)
Bitcoin is riding high above its 20-day and 200-day SMAs, with a bullish MACD crossover painting a rosy stabilized picture in the short term.
The Bollinger Bands are tightening, indicating less volatility, and the price is near the upper band. Watch out for a break past $66,000 to confirm the bullish trend.
The Final Thought – Are You Financially Rekt?
If you’re finding the market very stressful at the moment, go outside. Touch grass. Seriously.
If you believe in the long-term value of your portfolio, assess your risk management, then exit out of Coinbase and shoot a free throw or kick a ball.
Or buy the dip. If you don’t, others will, and they’ll gain more profits than expected. This is not financial advice, though ;).
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Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
It ain’t over yet