Bitcoin: Decoding why BTC fell below $ 20k on June 30
Crypto Bears launched a new attack on Bitcoin [BTC] on the morning of June 30, pushing the royal cryptocurrency below $ 20,000. Sales began shortly after Grayscale announced that the Bitcoin application was not going through.
The market’s reaction to the SEC shooting down Grayscale’s Bitcoin ETF is not surprising given the high expectations attached to it. Many crypto investors believe that a spot ETF approval represents a white swan event – desperately needed to encourage a healthy and bullish price action.
Today, the SEC rejected our application to convert $ GBTC to a place #Bitcoin ETF. 🧵
– Grayscale (@ grayscale) June 30, 2022
The SEC’s decision on Grayscale’s ETF application was contrary to hyped market expectations. It is therefore no surprise that some panic sales took place after the announcement. Bitcoin fell to $ 19,079 after losing more than 5% in the last 24 hours at press time.
Source: TradingView
Furthermore, the sales pressure in recent hours has pushed Bitcoin into the oversold zone according to the Relative Strength Index (RSI). However, the Money Flow Index (MFI) still indicates that BTC has had a strong accumulation despite the subsequent downside for five consecutive days. MicroStrategy happens to be among those who accumulated a significant amount of BTC this week.
Bitcoin’s sales also triggered higher currency inflows than currency outflows in the last 24 hours. The amount of BTC flowing into stock markets peaked at 14,612 on the morning of 30 June. On the other hand, the amount of BTC flowing out of the stock exchanges peaked at 13,944.
Source: Santiment
Meanwhile, Bitcoin’s market value fell as low as $ 363 million as sales intensified. Whales continued to unload BTC according to the supply maintained by whale metrics.
The latter continues to seek new monthly lows thanks to the outflows. Bitcoin’s MVRV ratio was -15.36% at the time of the press release, a noticeable decline over the last five days. However, it is still higher than the lowest point in June. 
Source: Santiment
Can the white swan still fly?
Grayscale also confirmed that it will pursue a lawsuit against the SEC for failing to approve the ETF. The crypto-investment company had previously stated that it would pursue this action if the spot ETF was not approved. This means that the hope of a spot Bitcoin ETF is still alive, but may not be realized in the next few months. Bitcoin maximalists must now hope for another catalyst than a spot ETF.
