Bitcoin’s current price fluctuation is the result of a combination of factors. These include massive liquidations and macroeconomic pressures. The combination of these elements has led to an apparent drop in Bitcoin’s value.
#1 Long Liquidations
The Bitcoin futures market has seen a massive liquidation, which led to today’s significant drop in price. According to Coinglass, over the past 24 hours crypto traders have liquidated more than $682.54 millions across 191,000 traders. data.
Bitcoin’s value plummeted by 8 percent in just a few hours. It went from $72,000 down to $66,500. Bitcoin’s value has recovered to $68,000, but it is still nearly 10% lower than its all-time record high, which was $73,737, set on March 14.
These liquidations accounted for $544.99 Million, with 80% being long positions. Liquidations from short position made up $136.94 Million, and Bitcoin longs alone accounted for $242.37 Million.
Bitcoin price is influenced by macro conditions.
Bitcoin’s price has come under increased pressure from the macroeconomic climate. Ted, a @tedtalksmacro macro analyst, discussed on X how macroeconomic conditions can affect the cryptocurrency market.
The following is a list of the most popular ways to get in touch with someone. stated, “If BTC is digital gold, expect it to trade in lockstep with gold, however, with higher beta.” Federal Reserve Meeting is imminent next The macroeconomic factor is expected to temporarily take the spotlight this week.
US Producer Price Index Data (PPI), which revealed a 0.6% gain in February, surpassing expectations of 0.3 per month, had a ripple-effect on CPI, with recent CPI data also being hotter than forecast, resulting in a rise in US Bond Yields. Rates for the benchmark 10-year note increased by 10 basis points, to 4.29%. Two-year rates also rose from 4.63% to 4.69%. This has led to traders adjusting their expectations of the Federal Reserve’s interest rates policies for 2024.
Mohamed A. El-Erian is a graduate of Queens’ College Cambridge University Allianz and Gramercy. remarked The situation is: “US government bond yields jumped today in reaction to yet another (slightly) hotter-than-expected inflation print (this time PPI).” The Fed is becoming more aware of the difficulties that persisting inflation can pose in achieving its 2% target.
#3 Negative Coinbase Premium / Quiet Bitcoin ETF Day
Bitcoin’s decline below $70,000 is also due to this. “Coinbase Premium” – the exchange which custodies the majority of all spot Bitcoin ETFs – dipping into negative territory for the first time since February 26, indicating a bearish sentiment from US markets. This is probably a result of large sales. Grayscale GBTCThe spot ETF was relatively quiet.
After a $1 billion record net inflow for spot ETFs on March 12, recent inflows have dropped to only $132.7 millions. Blackrock Contributing the largest share, $345.4 millions. Fidelity and ARK, on the other hand, saw inflows as low as $13.7 million, and $3.5 after a previous strong week. GBTC’s outflows were $257.1m, which is in line with normal levels.
Crypto analyst WhalePanda commented Noting the fact that, despite the decreased inflow of refugees, “$132.7 million is still 2 full days of mining rewards.” He says that he believes the market could rebound. “We’re just ranging now and overleveraged people getting margin called. I guess the next move up is for next week.”
BTC was trading at $67.916 as of the time this article went to press.
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