Why Bitcoin Price Is Falling Suddenly?

2 weeks ago 21

Bitcoin price fell nearly 5% from the intraday high of $64,734 after the market participants shrug off spot Bitcoin and Ether ETFs launch in Hong Kong. The selloff momentum took BTC price even lower than yesterday’s price due to high leverages in anticipation of a relief rally. However, the crypto ETFs debut in Hong Kong was disappointing for the market.

Moreover, the U.S. Spot Bitcoin ETFs have recorded the fourth consecutive day of outflow with over $51 million drained out. The crypto investment products registered three consecutive weeks of outflows, with the largest outflow of $435 million in recent weeks.

Bitcoin Price Slips After Disappointing Hong Kong ETFs Debut

Six spot Bitcoin and Ethereum ETFs in Hong Kong recorded only $12 million in trading volume on day 1, which is 383 times lower than U.S. Bitcoin ETFs debut.

Immediately after the tepid volume day on ETFs, traders started shorting Bitcoin price. Coinglass reported the shorting of Bitcoin positions, causing BTC price to drop suddenly to a low of $61,451. This triggered a wider selloff in the crypto market and investors lost nearly 130 billion as crypto market cap dropped to $2.27 trillion.

Some guys are shorting #BTC

https://t.co/7uAJeu6k6Y pic.twitter.com/fG2sdeUMnQ

— CoinGlass (@coinglass_com) April 30, 2024

Coinglass data shows more than $205 million were liquidated across the crypto market in the selloff. Among them, $145 million long positions were liquidated and over $60 million short positions were liquidated.

Over 66K traders were liquidated and the largest single liquidation order happened on crypto exchange Binance as someone sold ETH valued at $5.03 million. ETH price has tumbled over 5% in the last 24 hours.

Macro Factors Shows Volatility Ahead Fed Rate Decision

Oil price is up 0.23% and gold price fell 0.71% today, as markets awaited the Federal Reserve’s policy decision and non-farm payrolls data due later this week.

Meanwhile, the US dollar index (DXY) has climbed toward 106, currently up 0.10% at 105.69. The US 10-year Treasury yield (US10Y)jumped to a 6-month high of 4.636%. As Bitcoin moves opposite to DXY and Treasury yields, the pressure still growing on Bitcoin. However, the Q2 2024 Treasury refunding announcement could turn the tables in favor of Bitcoin.

The Fed meeting on May 1 is important for the crypto and stock markets as Chairman Jerome Powell could turn out to be hawkish and announce less than three rate cuts this year. All three US inflation data CPI, PCE, and PPI came out hotter recently, driving discussion on the Fed table.

Crypto analyst Rekt Capital said bitcoin is still in danger zone and can fall below $60,000. He also indicated a high possibility of rally starting mid-May.

#BTC

The Bitcoin "Danger Zone"

The Bitcoin Pre-Halving "Danger Zone" (orange) is where historical Pre-Halving Retraces have begun

Historically, Bitcoin has performed Pre-Halving Retraces 14-28 days before the Halving

This cycle was no different and here's why:

Because… pic.twitter.com/Ga04eTNIXk

— Rekt Capital (@rektcapital) April 30, 2024

Also Read:

The post Why Bitcoin Price Is Falling Suddenly? appeared first on CoinGape.

Read Entire Article