Bitcoin’s price has taken a sharp hit, falling 4% in the past 24 hours and raising concerns among investors. The global crypto market lost nearly $99 billion during the same period, bringing the total market cap down to $2.89 trillion.
But what’s behind this sudden drop? Here are the key reasons driving Bitcoin’s latest decline.
Bitcoin initially surged to $92,000 after President Donald Trump announced plans for a U.S. Strategic Bitcoin Reserve. However, the rally was short-lived as investors quickly realized the executive order did not clarify how the government would acquire more Bitcoin.
The lack of details on whether the U.S. will buy more Bitcoin or simply hold onto its seized BTC has made investors uneasy. Some analysts, including Peter Schiff, believe this uncertainty could hurt Bitcoin’s long-term growth.
Another reason for Bitcoin’s drop is the significant outflow from Bitcoin spot ETFs. According to Farside data, Bitcoin spot ETFs recorded a massive outflow of $134.3 million. This came right after a day of positive inflows, where Bitcoin ETFs saw $22.1 million entering the market.
Leading the outflows was BlackRock’s iShares Bitcoin Trust (IBIT), which saw a $50.6 million outflow, followed by Grayscale Bitcoin Trust (GBTC) with $34.5 million and Franklin Templeton’s fund with $18 million in outflows.
No other major ETF recorded a net inflow, indicating strong selling pressure from institutional investors.
On top of ETF outflows, a surge in market liquidations has increased selling pressure. In the last 24 hours, traders lost a total of $531 million, with long positions taking the hardest hit. Long traders accounted for $398.3 million of these liquidations, while short traders lost $133 million.
A total of 152,576 traders were affected, with the largest single liquidation happening on Bitfinex’s BTC/USDT pair, valued at $15.4 million. As more long positions get liquidated, selling pressure builds, pushing Bitcoin’s price even lower.
Bitcoin is struggling to hold a key support level. It is currently trading just below the crucial $89,041 mark. If it fails to reclaim this level, the price could drop further toward $85,000 or even $82,761.
However, if Bitcoin breaks above the $90,800 resistance and turns it into support, it could attempt a recovery toward $93,625.
Bitcoin has faced volatility before, but with institutional sell-offs and liquidation spikes, the road ahead looks anything but smooth.
Crypto dropped due to Bitcoin’s decline, ETF outflows, liquidations, and uncertainty over President Trump’s U.S. Strategic Bitcoin Reserve announcement.
If Bitcoin flips $90,800 into support, it may rebound to $93,625. Otherwise, continued selling pressure could push it toward $85,000 or lower.
Institutional investors withdrew $134.3M from Bitcoin ETFs, led by BlackRock and Grayscale, increasing selling pressure and lowering Bitcoin’s price.
In a surprising turn of events, Justin Sun, a prominent figure within the Tron (TRX)…
Cryptocurrency markets are experiencing fluctuations as traders brace for President Donald Trump's "Liberation Day" announcement,…
Grayscale, a leading crypto asset manager, has introduced two new Bitcoin ETFs, offering a fresh…
In a year marked by conservatism and a sentiment shift in crypto, one name is…
Particularly for Dogecoin (DOGE), Elon Musk, the billionaire entrepreneur CEO of Tesla and SpaceX, has…
The cryptocurrency market is no stranger to ups and downs, and this week, Shiba Inu…
