On Tuesday, June 18, the price of Bitcoin fell below $65,000 for the first time in over 4 weeks. Three days later, on June 21, the price dipped further to over 3% to land at $63,700.This new low is a continuing trend of decline in the price of Bitcoin that has now been dipping for five consecutive weeks. Bitcoin is now trading lower by 9% since last month and over 10% lower than its all-time high of $73,797, which was hit in April 2024.
According to data from analytic firm IntoTheBlock, Bitcoin miners have sold off 30,000 BTC in June alone. This sell-off of BTC valued at approximately $2 billion marks the fastest sale pace of the cryptocurrency in over a year, indicating that miners are dumping the currency. Additionally, the current total Bitcoin holdings of miners, which stand at 1.91 million BTC, is the lowest recorded in over 14 years.
When it comes to interest in Bitcoin from the general public, a decline has been noted as well. Data from Google Trends indicates that searches for the popular team “bitcoin” have steadily declined since March 2024 across the globe. The recent almost $2 billion in sales of BTC, the dollar strength, and the lack of growth catalysts have created anxiety around the cryptocurrency. Analysis firm Santiment echoed the same sentiments noting: “The crowd is mainly fearful or disinterested toward Bitcoin.” Based on this decline some analysts expect Bitcoin to reach the $60,000 level in the near term.
That said, while the past three months have seen the dismal performance of Bitcoin, the long-term outlook of crypto remains bullish. The cryptocurrency has been up more than 50% for the year and there’s anticipation of bounces that will reward the patient.
Should You Buy During the Dip?
Trading with crypto is similar to gambling on mobile casino real money platforms because the investment is of real money and the risks posed are also real. For both investments, timing and knowledge are key determinant factors of whether you or the house wins. This 2024 BTC decline is not new and if history is to repeat itself this short-term decline presents long-term buying opportunities with great rewards in the near future. Here’s why:
Peak Performance After the Halving
Crypto experts already admit that the performance of Bitcoin since the latest halving in April 2024 has been disappointing. However, it is not yet time to throw in the towel. The Bitcoin halving is aimed at reducing the rate of creation of new Bitcoins by one-half. This action is expected to set off a chain reaction of events that will eventually lead to higher BTC prices.
The previous halving cycle of May 2020 did not see a rise in the price of the cryptocurrency until several months according to analysis. This is because the financial impact of halving takes time to develop, just like how ratecuts take time to impact the broader economy. It is a matter of patience for several months before the halving impact can be seen in the rise of BTC prices.
Rise of Spot Bitcoin ETFs
The popularity of Spot bitcoin ETFs is growing and understandably so — this new class of investments allows investments in Bitcoin with lower risks and greater convenience. The amount of capital that has been invested in cryptocurrency through this new spot Bitcoin ETFs has been picking up steadily. At the time of publishing this article, over $30 billion worth of investments have been made into the new ETFs.
This investor inflow into the new spot Bitcoin ETFs, as indicated by events such as the 19-day streak of net investor inflows in June, suggests that with time the price of BTC will rise. Additionally, other institutional investors such as sovereign wealth funds, pension funds, and endowments are expected to join crypto investing and grow the crypto market.
Evidently, from a long-term perspective, buying Bitcoin during this dip could yield highly rewarding results. Some analysts and investors still believe the cryptocurrency could still hit the bullish trading price of $100,000 this year. This has been partly influenced by the spotlight on and growth of the pro-Bitcoin agenda on the election campaign trail. On the flip side, the bearish scenario of BTC’s performance this year anticipates a price drop to $42,000. However, this is unlikely.
BTC remains one of the most popular cryptocurrencies thanks to its high levels of security, decentralization, and security. Its security network is 500 times more powerful than the world’s most capable supercomputer and has approximately 20,000 nodes scattered around the world – making it the most decentralized crypto. BTC has minimal risk of manipulation and has proved its resilience against censorship offering investors ultimate privacy and autonomy. These core factors keep investors confident even during these bursts of decline in pricing as they await the eventual appreciation.
