"BTC is still volatile, but the price can go up again. How do you feel?"
Indeed, cryptocurrency king Bitcoin (BTC) fell again today, but the price that broke through $71,715 on May 28, 2024 will show further consolidation due to the increase in the 5-year Treasury yield two weeks ago.
Explained further, stock investors may now be on the fence following weak demand at the Treasury Department auction plus BTC futures open interest has risen 6% over the past week.
However, it should be noted that a 10% crypto market correction can usually trigger phased liquidations that will worsen the BTC price decline if the increase is too dependent on leverage.
In addition to regulatory developments and the approval of spot Ethereum (ETH) ETFs, the approval of the FIT 21 reform by Congress and the Senate that wants to repeal the SAB 121 accounting rules proposed by the SEC are among the factors that can push the price of BTC to climb higher.
The BTC price outlook remains positive in the short term with its recent stabilization triggered by reduced selling pressure by long-term holders and activity from investors who have large amounts of digital assets in their wallets.
Given that miners' natural daily selling pressure is $32 million per day since the halving, the ETF's nearly eightfold buying pressure suggests increased demand and decreased insurance for BTC will have a positive impact on its price.
As of this writing, the price of BTC trading at $67,578 has fallen slightly by 1.05% in the past 24 hours with a market cap of $1.3 trillion further down 2.66% over the past week.
