Bitcoin Falls Below $59K; Here’s Why BTC Price Is Dropping

The recent dip in Bitcoin has fueled market concerns, with the crypto dropping below $59,000 in the last 24-hour timeframe. The sudden freefall in BTC price has left investors spooked, sparking discussions over the potential reasons behind the retreat. It seems that several factors are in play behind the recent selloff, including macroeconomic concerns and other market trends.

So, here we explore the potential reasons behind the recent dip in BTC price.

Why Is Bitcoin Dropping Today?

The recent selloff was sparked by a massive dump by a whale one of the leading crypto exchanges recently. In addition, recent reports indicate that investors are staying on the sideline ahead of big earnings that are expected to set the path ahead for the US stock market.

Traders Await Nvidia And Other Earnings Results

The investors appear to be taking a pause ahead of big tech earnings this week which includes the chipmaker NVIDIA. The chipmaker is expected to release its Q2 FY25 financial results on August 28, after the market close. In addition, other big techs including Salesforce, CrowdStrike, and HP Inc., among others are also scheduled to report their earnings tomorrow.

Having said that, it appears that the investors are seeking further clarity before putting their bets into riskier assets like Bitcoin as well as in the overall crypto market. A recent CNBC report citing Wolfe Research said that Nvidia earnings will play a crucial role in setting the market sentiment this week.

US PCE Inflation Data To Impact BTC Price

The traders are also awaiting the US PCE data to gauge the latest inflationary pressure in the country. Although bets are soaring over a potential rate cut by the US Federal Reserve, especially after Jerome Powell’s speech last week, investors would be keeping a close watch on the upcoming economic figures.

The Fed Chair hinted at a dovish move with their policy rates going forward. However, he also said that the central bank will be evaluating the future economic data while deciding its next stance. Having said that, if the US PCE inflation figures come in hotter than expected, it could dampen the sentiment of the broader financial market.

In addition, the US job data, scheduled for September 6, will also play a key role in deciding the Fed’s next move with their interest rate plans. However, according to the CME FedWatch Tool, there are 66% odds of a 25bps rate cut by the central bank at their September meeting.

The US Core PCE remained unchanged at 2.5% lower than the expected 2.6%. However, the monthly PCE Price Index rose 0.2% in line with analysts estimates as the market looks towards cooling inflation data to clinch the needed Fed interest rate cuts. It’s impact on the market remains shaky as crypto assets continue in the red zone with current negative macroeconomic conditions.

Whale Dump Sparks Concern

A recent report from Whale Alert showed that a whale, identified by the wallet address “bc1qc….e3gvh” had moved 2,300 BTC, worth $141.81 million, to Kraken before the BTC crash. According to Arkham Intelligence report, the whale still holds 18.141K BTC, worth $1.07 billion.

Considering that, if the whale decides to book profit, it could impose immense pressure on the crypto. Notably, the recent surge in the crypto’s price to nearly $65K has helped many investors to book profit, especially after volatile trading over the past few days.

BTC Price Dips Below $59K

As of writing, BTC price was down around 4% to $59,753, while its trading volume soared 46% to $43.41 billion. Over the last 24 hours, the crypto has touched a low of $58,116, while hitting a high of $62,280.78.

Meanwhile, BTC Futures Open Interest (OI) dropped over 6% over the last 24 hours to $31.30 billion. Besides, from yesterday, the flagship crypto has faced liquidation of $100.02 million, CoinGlass data showed. In a 24-hour time frame, the overall crypto market noted a liquidation of $315.46 million.

However, despite the recent downturn, a recent Bitcoin price prediction hints that the crypto could hit $65,000 soon if it breaks a key resistance level. Now, all eyes are on the upcoming NVDA earnings report, which is scheduled after the US market closes today.

Despite the below the $59K level, the recent rebound also hints that some investors are taking the opportunity to buy the dip.