According to CoinGape Analytics:

Bitcoin Price : Here’s Why BTC Price Falling?

Bitcoin price has been trading from a low of $62,332.07 to a high of $66,878.65 in the past 24 hours, settling at $63,000 today. The leading cryptocurrency witnessed a decline in its value by 4.52% in the past day, and 11.33% over the past week. As a result, BTC market cap has dropped by 4,47% to stand at approximately $1.24 trillion. Regardless of the dip, the coin still maintains its position as the leading cryptocurrency, according to CoinMarketCap. 

Top Reasons Why Bitcoin Price is Falling

Various factors have contributed to the drop of BTC prices as discussed next.

1. Geopolitical Conflicts

One of the main reasons for the dropping of BTC price is recent increased tensions in the Middle East, after Israel was attacked by Iran. The value of Bitcoin fell by over  8.4% from $67,000 to the current price of approximately $62,000. 

2. Normal Pre-halving Retracement

Another reason the price of BTC has nosedived is because the coin is in its normal pre-halving retracement phased. Normally, this takes place before Bitcoin halving occurs. Bitcoin’s retracing is consistent with past trends, a time which the value of Bitcoin fluctuated days before the halving event. 

3. Liquidations of Long Positions

The decrease in Bitcoin value was partially due to the closure of long positions in the Bitcoin futures market. Market witnessed high volatility in conjunction with liquidations, indicating a significant market movement. In one day, more than $43.7 million worth of long positions were closed, with a sudden increase to $20.6 million within a span of only 4 hours, according to Coinglass. Due to decreased purchasing activity, Bitcoin trading volumes dropped by more than $24 billion from the peak of $45 billion on March 5.

4. Bitcoin ETFs Outflows

There has been a recent observation of outflows from U.S. Bitcoin ETFs, except for BlackRock’s BTC ticker ETF which saw inflows in the past two days.