Volatility alert: Bitcoin drops to $67,000

Bitcoin fell from over $72,000 to around $67,000, a decline that highlights its continued volatility.

The drop comes despite growing interest and acceptance of Bitcoin in the traditional financial sector.

The introduction of Bitcoin ETFs in the US could influence the future stability of the market, despite the current volatility.

Bitcoin (BTC) saw a sharp drop in overnight trading, demonstrating that the world's largest cryptocurrency has yet to overcome its tendency to experience large declines, despite continuing to gain acceptance in the mainstream financial world.

Consequently, data from Coin Metrics shows that Bitcoin was trading above $72,000 on Thursday night before falling to around $67,000 on Friday, representing a decline of around 7%.

It was not immediately clear what caused the fall of Bitcoin, which trades 24 hours a day.

Bitcoin is still up about 57% year-to-date, with the overnight drop occurring near all-time highs. However, the cryptocurrency has climbed in recent months, initially driven by anticipation and later demand for the new Bitcoin ETFs that launched in the US in January. Therefore, this increase reflects growing interest and broader acceptance in the financial market.

I think it's a healthy move. “We are removing some of the leverage that has built up in the system,” Kris Marszalek, CEO of Crypto.com, said on CNBC’s “Squawk Box” program on Friday, adding that the selling pressure was likely coming from the options market.

Bitcoin Volatility Analysis

Furthermore, rapid rises and steep falls have been a recurring feature in Bitcoin's history. For example, in its previous bull market, Bitcoin soared above 68.000 USD in November 2021, but it was trading below