Assessing Why Bitcoin (BTC) Dropped Beneath $20K on June 30

Cryptocurrency bears confirmed their presence with a new assault on BTC early on June 30, dragging the bellwether crypto beneath the crucial $20,000. The downside emerged after Grayscale revealed rejections of its BTC ETF application.

The market’s response to the BTC ETF application rejection by the SEC is unsurprising due to the high expectations. Most cryptocurrency investors trust spot exchange-traded find authorization means a white swan move, desperately required to ensure impressive and healthy bullish BTC price movement.

The SEC’s move against the Grayscale ETF proposal went contrary to the high expectations within the marketplace. Therefore, it isn’t a surprise that panic selling followed the announcement. BTC plunged to $19,079 following an over 5% decline within the previous 24 hours.

Moreover, the Relative Strength Index showed selling momentum within the past couple of hours pushed BTC into the oversold region. Nevertheless, the MFI (Money Flow Index) confirms massive BTC accumulation regardless of the successive plummets within the past five days. MicroStrategy is among the players that took advantage of the current dip, adding to their holdings.

Also read: Everything You Need To Know About Crypto Fear And Greed Index

Moreover, BTC’s sell-off catalyzed increased exchange inflows within the past 24 hours, exceeding outflows. BTC inflows to crypto exchanges hit the 14,612 high on June 30 morning. Contrarily, outflows touched the 13,944 peaks.

Meanwhile, the world’s leading crypto had its market capitalization plummeting towards the $365 million lows amidst intensified sell-off. Supply by whales’ metric shows large wallet investors continued to dump BTC.

The latter seems primed for new monthly lows following prevailing outflows. BTC’s MVRV ratio hovered at -15.36 during this publication, a considerable decline within the past five days. Nevertheless, it remained higher than June’s lowest mark.

What Next?

Meanwhile, Grayscale confirmed plans to pursue a suit against the Securities Exchange and Commission following the exchange-traded fund rejection. The cryptocurrency investment firm previously revealed seeking such actions upon its ETF disapproval. That means hopes about spot BTC ETF remain alive but might not materialize in the coming few months. Nevertheless, Bitcoin maximalists will have to look for another catalyst besides the spot ETF.