BTC, which is a leading cryptocurrency in the world has dropped to $60.000 today. This has caused many investors to ask why Bitcoin has declined so dramatically. The leading cryptocurrency, Bitcoin has dropped more than 5.9% in the last 24 hour according to CoinMarketCap.
In the last 24 hours, trading volumes have increased nearly 290%. The token has lost nearly $5,000 since last week. Traders are eager to understand the current bearish trend and its end.
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BTC suffers massive drop as market turns red
Bitcoin’s recent performance is closely linked to the Spot ETF that was approved by the SEC in January. The recent drop in Bitcoin’s price is probably due to this connection. Investors have withdrew $584,000,000 from exchange-traded crypto products, according to recent data. CoinShares report.
Bitcoin is also down to $630m in its current value, a decline of $60,000 from the previous level. James Butterfill of CoinShares, the company’s director of research, says that the poor performance may be due to macroeconomic trends.
“We believe this is in reaction to the pessimism amongst investors regarding the prospect of interest rate cuts by the [Federal Reserve] this year,” Butterfill added. BTC experienced six days in a row of massive outflows. Canada and Hong Kong also suffered similar outcomes.
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Bitcoin whales could also be a factor in the price of BTC dropping over the past few weeks. Sanatiment reported Transactions over $100,000 are down 42% within a couple of days. This decline also indicates a noticeable shift in whale behaviour and increases caution about the trading of digital assets.
Bitcoin is the leader in crypto, but its recent decline has resulted in more than $300,000,000 of liquidations. Experts have also predicted the drop will continue, with BTC liquidating $132 million, according to Coinglass.
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Source: watcher.guru