Bitcoin's recent ascent to a two-month high of $66,500 on September 27 has been followed by a notable decline. Over the past three trading days, the cryptocurrency has dropped approximately 7%. Starting from October 1, Bitcoin plummeted from $63,800 to a low of $60,128.1. On October 2, intraday losses exceeded 4%, although the decline narrowed to 2.55%, with a recent trading price of $61,259.7.
Market data indicates that in the past 24 hours, the total liquidations across the virtual currency market surged, affecting 157,000 individuals and totaling $510 million (about 3.6 billion RMB). According to reports, Bitcoin's continuous decline has ended its September rally, dampening investor optimism for what has historically been one of the best-performing months for the cryptocurrency. Since 2013, Bitcoin has only twice closed October in the red.
Technical indicators suggest Bitcoin is facing headwinds after its strong rise since early September. The Stochastic RSI is in the overbought zone, and many Bitcoin holders are beginning to sell. This sentiment is echoed by market analysts who attribute the recent downturn to reduced expectations of a Federal Reserve rate cut and cooling demand for Bitcoin ETFs.
Despite the influence of Bitcoin spot ETF inflows on its price and the broader virtual market, the prevailing market expectation is that the current downward trend will persist. Market participants are awaiting new information and signals to determine the next direction for Bitcoin.
Additionally, since Bitcoin's halving event in April, miners' revenues have significantly decreased. Before the halving, Bitcoin's production varied but centered around the block reward system, yielding an average of 6.25 Bitcoins every 10 minutes, or about 900 per day. Post-halving, this number has halved to approximately 450 Bitcoins per day. Currently, Bitcoin's price is nearly the same as pre-halving levels ($60,000 to $65,000 per coin), but miner output has halved, potentially leading to a $10 billion revenue loss for the industry over the year if Bitcoins are sold at $60,000 each.
