Why is the Bitcoin Price Down Today?
Bitcoin’s price continues declining, unable to find grounds for a rebound throughout this week. The broader cryptocurrency market is also feeling the pressure as the last 24 hours saw most of the coins drop in value.
Bitcoin has been having hard times throughout the past few days, completely unable to stage any sort of recovery. The price attempted to push toward $66K but the sellers intercepted the move and reestablished their positions. At the time of this writing, BTC trades below $64K.
This move also caused a relatively considerable amount of liquidated positions, most of which had gone long. In fact, the past 24 hours saw around $150 million worth of total liquidations, 73% of which – long. The drop coincides with a relative decline in the stock market throughout the past day as well.
As seen in the heatmap above, a lot of the leading stocks in the index such as NVDA, AAPL, MSFT, and others – are charting declines.
Other Reasons Why the Bitcoin Price is Down Today
Bitcoin trader fatigue has hit record levels as the price is anticipating a rebound. In essence, what this means is that the crowd is mostly fearful or disinterested at the current price range.
This extended level of FUD (Fear, Uncertainty, and Doubt) is rare, as traders continue to capitulate. BTC trader fatigue, combined with whale accumulation, generally leads to bounces that reward the patient. However, there are additional factors to keep in mind. For once, the retail crowd is not here yet, according to research.
Moreover, spot Bitcoin exchange-traded funds (ETFs) are seeing considerable outflows, meaning people are selling through the ETFs. For the past week, all spot Bitcoin ETFs in the US experienced a total of $900 million in losses for the week.
Conclusion
The underperformance of Bitcoin and the broader cryptocurrency market is influenced by multiple factors, including stock market declines, trader fatigue, and outflows from Bitcoin ETFs. While this period may be challenging, understanding these dynamics helps investors make informed decisions.
