Reasons Behind Bitcoin Price Dipping Below $58,000

Bitcoin has fallen to as low as $58,000 within the last 24 hours as it struggled to maintain its support above $60,000. Analysts are pointing towards the CME gap as a key factor in this recent price drop, with expectations of a rebound in the near future.

The Impact of CME Gap on Bitcoin’s Price Decline

Experts like Daan Crypto and Speed Racer suggested that Bitcoin’s drop was influenced by the need to fill the CME gap around the $60,000 mark. The CME gap represents the disparity in Bitcoin’s price on the Chicago Mercantile Exchange (CME) futures market during weekend closures and Monday openings.

Other analysts such as Ninja emphasized that the fall in Bitcoin’s price was a result of the CME gap and termed it as “bullish selling.” Despite acknowledging the challenging market situation, he reassured Bitcoin investors of a forthcoming market recovery.

Fortunately, Daan Crypto disclosed that the CME gap has now been closed, hinting at a potential price rebound for Bitcoin. Crypto specialist Michael van de Poppe echoed this sentiment, affirming the closure of the CME gap and anticipating a positive movement in BTC’s value.

Crypto analyst Titan of Crypto chimed in, stating that with the CME gap filled, Bitcoin is poised for an upward momentum, projecting a possible rise to $72,000 in the next phase.

Possible Additional Issues Contributing to the Price Decline

Besides the impact of the CME gap, ongoing selling pressure on Bitcoin is another factor affecting its market value. Reports indicate significant outflows from Spot Bitcoin ETFs, leading fund issuers to divest their BTC holdings to fulfill redemption requests.

Moreover, the German government’s continued selling of Bitcoin holdings remains a concern, along with fears surrounding potential selling pressure once the now-defunct Mt. Gox exchange starts repaying creditors with around $9 billion worth of cryptocurrencies.

As of the latest update, Bitcoin is trading near $58,600, reflecting over a 3% decrease in the past 24 hours based on data from CoinMarketCap.