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Bitcoin Derivatives Signal Bearish Turn as Price Drops Below $60,000

Jun 24, 2024

 Bitcoin Derivatives Signal Bearish Turn as Price Drops Below $60,000
 Bitcoin Derivatives Signal Bearish Turn as Price Drops Below $60,000
 Bitcoin Derivatives Signal Bearish Turn as Price Drops Below $60,000

Bitcoin derivatives have turned bearish as traders anticipate the price of BTC dropping below $60,000. The cryptocurrency saw a 5.8% decline from June 23 to June 24, hitting a seven-week low of $59,700 before recovering slightly to $60,400. This drop led to the liquidation of $153 million in leveraged long BTC futures due to insufficient margin, shifting derivatives sentiment from bullish to neutral after a five-week uptrend. Concerns over a potential selloff from Mt. Gox and the German government, which recently transferred a significant amount of seized BTC to exchanges, have contributed to market uncertainty. Analysts are divided on whether this indicates a prolonged bear market or a temporary panic. Additionally, macroeconomic factors and upcoming economic data, including the U.S. PCE inflation index, are influencing investor sentiment amid fears of a broader market downturn.