
Jakarta, Pintu News – Bitcoin has experienced another sharp drop below $98,000, sparking concerns in the crypto market. This article will review some of the main factors affecting the price drop of Bitcoin and other cryptocurrencies!
Bitcoin’s price drop this time was triggered by several factors. First, there was a sharp decline in crypto-related stocks, which had a direct impact on the market. In addition, the market’s diminishing expectations of an interest rate cut by the Federal Reserve (Fed) also put additional pressure.
Recent comments from Fed officials have dampened hopes for looser monetary policy, prompting investors to take a more cautious position.
Massive selling by institutional investors has also put pressure on Bitcoin’s price. Reports suggest that large entities such as BlackRock, Binance, and Wintermute have sold more than $1 billion worth of Bitcoin, causing the price to drop rapidly by about 5% within minutes. Outflows from exchange-traded funds (ETFs) have also shown a decline, with Bitcoin ETFs losing $1.2 billion worth of assets in the past week.
Also read: Bitcoin (BTC) Sales by Long-Term Holders, What Impact on Price?
The Fear and Greed Index, which is an indicator of market sentiment, also showed a significant decline. The index has dropped to 25, close to the ‘extreme fear’ zone. This shows that the current market sentiment is extremely negative, which often leads to mass selling in the crypto market. In addition, the high liquidation rate of over $20 billion last month also adds to the uncertainty in the market.
Although Bitcoin has reached record highs above $126,000 earlier, the currency is now facing a significant correction. If Bitcoin can hold above $98,000, there is a possibility of a short-term rebound towards $107,000. However, if the price drops below this critical level, the market may experience a deeper decline, possibly to $90,000.
That’s the latest information about crypto. Follow us on Google News to get the latest crypto news about crypto projects and blockchain technology. Also, learn crypto from scratch with complete discussion through Pintu Academy and stay up-to-date with the latest crypto market such as bitcoin price today, xrp coin price today, dogecoin and other crypto asset prices through Pintu Market.
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*Disclaimer
This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Trading crypto carries high risk and volatility, always do your own research and use cold hard cash before investing. All activities of buying and selling bitcoin and other crypto asset investments are the responsibility of the reader.
What caused today’s Bitcoin price drop?
Bitcoin’s price drop today was due to a sharp decline in crypto-related stocks and dwindling expectations of an interest rate cut by the Fed.
How much assets have Bitcoin ETFs lost recently?
Bitcoin ETFs have lost $1.2 billion worth of assets in the past week.
What is the Fear and Greed Index and how does it affect the crypto market?
The Fear and Greed Index is a market sentiment indicator that shows the level of fear or greed among investors. A low index indicates high fear, which often leads to mass selling.
How high was the liquidation rate in the crypto market last month?
Liquidations in the crypto market last month totaled more than $20 billion, indicating a high level of volatility.
What could happen if Bitcoin holds above $98,000?
If Bitcoin can hold above $98,000, analysts believe that there is potential for a short-term rebound towards $107,000.
That’s the latest information about crypto. Follow us on Google News to get the latest crypto news about crypto projects and blockchain technology. Also, learn crypto from scratch with complete discussion through Pintu Academy and stay up-to-date with the latest crypto market such as bitcoin price today, xrp coin price today, dogecoin and other crypto asset prices through Pintu Market.
Enjoy an easy and secure crypto trading experience by downloading Pintu crypto app through Google Play Store or App Store now. Also, get a web trading experience with various advanced trading tools such as pro charting, various types of order types, and portfolio tracker only at Pintu Pro.
*Disclaimer
This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Trading crypto carries high risk and volatility, always do your own research and use cold hard cash before investing. All activities of buying and selling bitcoin and other crypto asset investments are the responsibility of the reader.
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