šØ Why Bitcoin Dumped Below $56K? - 4 Reasons
Bitcoin hit a new weekly low of $55,600. Hereās a breakdown of the factors contributing to this decline:
1. US Stock Market Crash
- S&P 500: Dropped 2.1% today.
- NASDAQ: Fell 3.26%.
- NVIDIA: Plummeted nearly 10% due to a DOJ subpoena.
The stock market downturn is largely attributed to economic slowdown concerns, particularly related to recent job data.
2. Japan Stock Market Decline
-The Yen carry trade has not fully unwound, causing a significant drop in the Japanese stock market. This decline in Japan's market has impacted global markets as well.
3. Massive Outflow
-Bitcoin ETFs experienced a $288 million outflow yesterday, marking the largest outflow in 4 months. This reflects a broader shift away from Bitcoin investments.
4. Massive Liquidations
- In the past 24 hours, $170 million worth of long positions were liquidated. This forced selling by exchanges exacerbates the price drop, creating a cascading effect.
As anticipated, September is proving to be a challenging month for Bitcoin and the broader crypto market. The hope is that Bitcoin won't set a new low during this period.
Looking Ahead: Q4 historically tends to be more bullish for Bitcoin and crypto. With Septemberās volatility behind us, thereās optimism for a potential recovery as we move into the final quarter of the year.
Stay informed and prepared with @Professor Mende - Bonuz Ecosystem Founder for potential shifts in the market!
