Why Bitcoin is Going Down Today: Key Reason Behind BTC Price Drop

Why Bitcoin is Going Down Today? Will Bitcoin Rise Again and Hit 1M?

Bitcoin continues to trade within a sideways range, with its price fluctuating between key support and resistance levels. The cryptocurrency has yet to break out in either direction, keeping investors in suspense about its next significant move. 

At the time of writing, Bitcoin price is trading below the $98,000 mark, showing a weekly decline of over 7%. According to CoinMarketCap, BTC price was last recorded at $97,150.39, reflecting an intraday drop of 1.08%. The cryptocurrency’s total market capitalization stands at $1.92 trillion, with a 24-hour trading volume of $48.04 billion and the immediate resistance range lies between $97,521 and $98,430.

Why Bitcoin is Falling: Who’s Behind the BTC Crash?

Bitcoin's downward movement has been influenced by shifting investor sentiment among long-term holders. According to Ali Martinez, over 20,000 BTC have moved out of long-term holder wallets in the past 96 hours.

This shift could increase Bitcoin’s circulating supply, potentially affecting its BTC price action. The Long-Term Holder (LTH) Spending Binary Indicator currently sits at 0.428, suggesting increased spending activity. With a total of 13,084,009 BTC held by long-term investors, any significant reduction in these holdings could lead to further price declines.

Meanwhile, Spot Bitcoin ETF outflows have added to selling pressure. The latest data shows a daily total net outflow of $140.30 million, bringing cumulative total net inflows to $40.53 billion. Total net assets currently stand at $113.51 billion, representing 5.91% of Bitcoin’s market capitalization. The growing outflows suggest that institutional investors are taking a cautious stance, further weighing on Bitcoin’s price.

Source: SoSoValue

Apart from this, Trump tariffs news has resurfaced, adding to market instability. While the US, Mexico, and Canada have agreed to a one-month pause on tariffs, the ongoing trade tensions between the US and China remain unresolved. In retaliation to the US-imposed tariffs, China has also imposed duties on US goods, further impacting global financial markets. Additionally, China’s antitrust investigation into Google has fueled uncertainty, leading to significant sell-offs across various asset classes, including cryptocurrencies.

Bitcoin Price Prediction: Will Bitcoin Rise Again?

Popular analyst Capo suggests that Bitcoin could see another 5%-10% drop, potentially forming a higher low. He also speculates a possible bottom between $88,000 and $90,000. However, Bitcoin miner IREN’s CEO Daniel Roberts remains optimistic, arguing that Bitcoin price will continue to rise over time due to increasing institutional adoption. He even predicts that Bitcoin will reach $1 million by 2030 if current trends persist.

Despite short-term volatility, long-term investors remain hopeful that BTC price will recover. However, with ongoing Spot Bitcoin ETF outflows, geopolitical tensions, and Trump tariffs news creating uncertainty, Bitcoin’s immediate future remains unpredictable.