#BTC Recent Decline: Bitcoin has seen a recent decline from its all-time high of over $111,000 last week, dropping to around $104,000. This follows a period of significant gains that started in April.
* Profit-taking: Heightened uncertainty over US President Donald Trump's trade tariffs has spurred sustained profit-taking in the crypto market, contributing to the recent dip.
* Liquidations: May 30 saw substantial liquidations of over $700 million in crypto futures, with long positions accounting for a large portion, indicating overleveraged bullish positions.
* ETF Outflows: Spot Bitcoin ETFs experienced net outflows recently, ending a 10-day streak of inflows. This institutional selling pressure added to the bearish sentiment.
* Market Sentiment: Despite the recent correction, data from futures and options markets suggests that professional traders are still positioned for a rebound, and investor sentiment remains strong. The "Bull Score Index" for Bitcoin is at 80, indicating increasing optimism.
* Exchange Outflows: Around $1.52 billion worth of BTC exited crypto exchanges in the last 24 hours, suggesting that holders are moving their assets to private wallets for long-term holding, which could reduce selling pressure.
Factors Driving Bitcoin's Value:
* Limited Supply: Bitcoin has a fixed supply of 21 million coins, which creates scarcity and can drive up its price as demand increases.
* Demand and Market Sentiment: As more people become aware of Bitcoin and its potential, demand grows. Factors like media coverage, regulatory developments, and global economic conditions significantly impact market sentiment.
* Medium of Exchange: Bitcoin's increasing acceptance as a digital asset for purchasing goods and services, along with its efficiency for cross-border payments, contributes to its value.
* Institutional Adoption: Record inflows into Bitcoin Spot ETFs and initiatives like Arizona's Bitcoin Reserve Fund demonstrate growing institutional confidence.
* Macroeconomic Factors: Broader macroeconomic trends and geopolitical events.
