Bitcoin (BTC) Price Plummets Under $60k: What Caused the Drop?
Bitcoin (BTC) experienced a decline of over 4 percent on Wednesday, dropping to a daily low of approximately $59,712 during the early New York trading session. This sudden 3.3 percent setback in the crypto market led to forced long liquidations totaling over $140 million.
Amidst significant losses in the altcoin sector over the past 24 hours, many investors turned to the stablecoins market for stability. Current data from crypto oracles indicates that the total value of the stablecoins market stands at around $160 billion, with an average daily trading volume exceeding $52 billion. In contrast, the combined daily average trading volume of Bitcoin and Ethereum amounts to about $38 billion.
The Top Reasons Bitcoin Price Slipped Below $60k:
Upcoming High-Impact News:
The United States Department of Labor is set to release unemployment claims data today, providing crucial insights into the country’s economic well-being. Additionally, the US Federal Reserve will unveil the FOMC meeting minutes, offering valuable information on the economic outlook. It is expected that the Fed will maintain a dovish stance leading up to the US general election and may implement interest rate cuts.
Poor Performance of Spot BTC ETFs:
US spot Bitcoin ETFs have witnessed significant fluctuations in cash flows recently. Following five consecutive days of positive inflows, these ETFs recorded a total outflow of approximately $14 million on Tuesday. The diminishing demand for spot Bitcoin ETFs, coupled with the impending Mt. Gox distribution and increased sales by the German government, has exerted downward pressure on bullish sentiment.
Anticipated Spot Ethereum ETF Listing:
The anticipated listing of approved spot Ethereum ETFs scheduled for tomorrow is poised to bring the altcoin market into sharper focus. The formation of a macro reversal pattern in Bitcoin dominance is expected to accelerate the ongoing trend of capital rotation within the crypto market towards altcoins.
In conclusion, the cryptocurrency market continues to experience fluctuations driven by a combination of market dynamics and external factors. Investors are closely monitoring developments in both Bitcoin and altcoins as they navigate through this period of volatility.
