Bitcoin (BTC) Continue To Fall, Let’s Find Out Why

It seems that the Bitcoin (BTC) rally is finally over as its price started to fall last week. In addition, massive amounts of BTC were reported to have been liquidated in the last 24 hours.

The recent Bitcoin crash has triggered concerns in the crypto market, discussing the causes of its sudden drop. Bitcoin (BTC) plummeted by nearly 7% today, leaving investors searching for potential reasons amid the volatility. 

What’s The Reason Behind Bitcoin’s Fall?

There are several factors to consider that may have been triggering Bitcoin’s recent crash, some of the reasons are:

Quiet Market Activity Precedes FOMC Meeting 

Ahead of the Federal Open Market Committee (FOMC) decision, the market appears to have stayed quiet, as investors are proceeding with caution. The recent inflation figures, such as the US Consumer Price Index (CPI) and Producer Price Index (PPI) have somewhat lowered the market sentiment. 

In addition, investors had initially expected five rate cuts this year, however, recent inflation has compelled them to change their bets to only three. The CME FedWatch Tool indicates a 99% probability of interest rates remaining unchanged tomorrow. 

Crypto Market Liquidations

Recent data from Coinglass show a $622 million worth of BTC was liquidated in the last 24 hours. Of these liquidations, $106 million consisted of short positions while $515 million consisted of long positions. 

In addition, Bitcoin faced further losses, with liquidations amounting to $130 million, affecting long traders with $102 million and short traders with $28 million. These massive liquidations have contributed to Bitcoin’s downturn. 

Bitcoin’s OI and RSI

Bitcoin Futures Open Interest (OI) experienced a slight dip, dropping by 0.76% in the last 24 to 532,000 BTC or $34.12 billion. While the CME Exchange witnessed a 4.53% decline to 168,000 or $10.78 billion, Binance witnessed a 3.39% drop to 114,000 BTC or $7.36 billion.

At press time, Bitcoin is down by 7.61%, trading at $62,792 with a 24-hour trading volume of $62.70 billion.

ABOUT THE AUTHOR See More

Sophia Cruz

Financial Writer - Asian & European Desks

Sophia is an experienced writer, reporter and newsdesk member, mostly on the financial sectors. For the past 5 years Sophia has covered a wide variety of topics such as the financial markets, economics, technology, fin-tech and trading. Sophia has been a part of the FX Leaders team since 2017 and works on producing valuable content and information for traders of all levels of experience.

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