BTC Falls to $60,000: Why is Bitcoin Down Today?

Joshua Ramos

With a market downturn heavily affecting the market, BTC has fallen to $60,000 leading many investors to question why Bitcoin has fallen so much today. Over the last 24 hours, the leading cryptocurrency has fallen more than 5.9% according to CoinMarketCap.

The asset’s overall market value has also decreased, while its trading volume surged nearly 290% in the last day. With the token losing nearly $5,000 in value from last week, traders are desperate for insight into the bearish trend, and when it could possibly come to an end.

Source – SkyNews

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BTC Suffers Massive Drop as Market Turns Red

Since the start of the year, Bitcoin’s performance has been closely connected to its Spot ETF approved in January. That connection has likely been a reason for its recent downturn. Crypto-related exchange-traded products (ETPs) have seen investors withdraw $584 million according to a recent CoinShares report.

Moreover, Bitcoin has seen $630 million in outflows from its investment vehicles along with the cryptocurrency’s decline to $60,000 today. CoinShares head of research, James Butterfill, notes the product’s poor performance is likely connected to greater macroeconomic developments.

“We believe this is in reaction to the pessimism amongst investors regarding the prospect of interest rate cuts by the [Federal Reserve] this year,” Butterfill said. Altogether, BTC has witnessed six straight days of outflows, with both Canada and Hong Kong suffering similar outcomes.

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Additionally, Bitcoin whale activity could factor into BTC’s price drop over the last several weeks. Sanatiment reported that transactions over $100,000 have fallen 42% in a matter of days. Moreover, that decline denotes a notable shift in whale behavior and informs increased caution regarding the trading activity of the digital asset.

Bitcoin leads the crypto market, and its recent deterioration has led to more than $300 million in liquidations taking place. Additionally, experts have predicted that the decline will extend, with BTC seeing $132 million in liquidations, according to Coinglass.