Bitcoin price drop amid negative indicators
Bitcoin, the largest cryptocurrency by market capitalization, has lost nearly 4% of its value over the last day. Currently, Bitcoin is trading near $83,000, with on-chain indicators showing a bleak picture for the asset.
Major negative indicators
Weekly decline of 3.37%.
Daily trading volumes declined by 53%.
Despite this, Bitcoin whales purchased large amounts, accumulating over 22,000 Bitcoin in three days.
Reasons for the decline after a positive week
Despite the positive week marked by the signing of an executive order to create a strategic reserve for Bitcoin and a digital currency summit at the White House, the following factors appear to have negatively impacted performance:
1. Macroeconomic factors
U.S. tariffs: Led to a wave of selling for Bitcoin and other cryptocurrencies.
U.S. employment report (NFP): The report released on Friday indicated the likelihood of tighter monetary policy from the U.S. Federal Reserve, negatively impacting Bitcoin's price.
2. Lack of actual actions
Experts say the executive order to create a strategic reserve for Bitcoin and the digital currency summit did not include 'actionable' policies, dampening investor enthusiasm.
3. Impact of the decline on alternative currencies
The drop in Bitcoin has pulled down alternative currencies, which lost:
Ethereum (ETH): 3.24%.
XRP: 6.38%.
BNB: 4.78%.
Expert comments
An analyst commented: "In eight years of tracking Bitcoin, I've never seen price movement so detached from the news. This week was likely the most optimistic in Bitcoin's history, yet we are seeing a decline."
