The post Why Bitcoin Price Crashed Today? Here Are The Top Reasons appeared first on Coinpedia Fintech News
ETF Inflows Drops 80.6% in 24 Hours, Pushing BTC Price Below $66,699. However, the cryptocurrency quickly bounced back above $67,730, maintaining a market cap of $1.322 trillion. Bitcoin’s price experienced a significant drop, plunging to as low as $66,952 during Friday’s early Asian trading hours, marking a 7% decline. Shockingly, this sharp downturn wiped out over $100 million in Bitcoin long positions as the cryptocurrency fell from its recent peak of $70K.
The real cause behind this sudden plunge is the release of the latest U.S. economic CPI data, which raised concerns about ongoing inflation and fueled speculation about the Federal Reserve’s monetary policy stance. After rumors of no rate hike, many experts are now claiming that the Fed will maintain higher interest rates for a longer period, adding pressure on Bitcoin’s price.
What’s Pulling BTC?
The current market crash was worsened by a trend often seen when U.S. markets open, which tends to coincide with Bitcoin’s decline. Also, Bitcoin’s drop mirrored losses in other assets like gold and the Nasdaq index. After this sudden plunge experts see BTC pulling down to the $60k price level possibly before the Halving Rally.
While some analysts view Bitcoin’s retreat as a typical breather following a rapid uptrend, others call it to market overheating and uncertainties circling the upcoming mining reward halving. However, Adam Cochran, an investor, highlighted the potential profitability of short-term leveraged positions in response to the dip.
Greta Yuan, Head of Research at VDX, suggested that Bitcoin’s recent surge may have outpaced the market’s ability to price it correctly, thus necessitating a correction. Similarly, Adrian Wang, Founder and CEO of Metalpha, speculated that the correction could be attributed to market adjustments ahead of the halving event.
However, despite the temporary setback, Singapore-based QCP Capital remains optimistic about Bitcoin’s long-term prospects. They anticipate the dips to be short-lived, emphasizing the ongoing strong demand for BTC spot ETFs. Plus, they note significant interest in BTC calls predicting prices between $100-150k by year-end. As the market braces for the release of Federal Open Market Committee minutes, volatility is expected to persist, but QCP Capital remains bullish on Bitcoin’s trajectory.
Massive Liquidation Impacting Market Stats
During the recent Bitcoin price drop, the crypto community witnessed a massive liquidation event, with a jaw-dropping $680 million in assets being wiped out. Long orders took the biggest hit, accounting for $545 million of the liquidated assets, while shorts contributed $134.6 million. Over 193,270 individuals were affected by this widespread liquidation, highlighting the volatility of the crypto market. Among the notable liquidation orders was a significant $13.3 million on the OKX – BTC -USDT-SWAP platform.
