World Crypto Global Official Site | why is bitcoin down today

Author: Jake Simmons

Bitcoin Price Dips Below $57,000: 4 Key Reasons

Bitcoin (BTC) has witnessed a significant drop, falling to $56,556 during Wednesday morning in Europe, marking the lowest point since late February. This downturn represents the sharpest monthly decline since November 2022, with BTC tumbling approximately 7.5% within the last 24 hours and breaching the previously stable $60,000 support late Tuesday. #1 Derisking Before Todays FOMC Meeting Anticipation and anxiety are high in financial circles as the Federal Open Market Committee (FOMC) is set to announce its interest rate decision later today. This event is crucial as the crypto market, notably Bitcoin, has grown increasingly reactive to macroeconomic signals. Recent data, reflecting a slowdown in GDP growth coupled with persistent inflation, has significantly reduced expectations of interest rate cuts by the Federal Reserve. “Bitcoin and other risk assets are currently feeling the pressure from a stagflationary environment, geopolitical tensions, and seasonal liquidity variations,” remarked Ted from TalkingMacro. Related Reading: If History Repeats, This Is How Bitcoin Price Will Perform In The Next 6 Months Initially, up to seven rate cuts were anticipated by the end of 2024, a sentiment that has shifted dramatically with the market now pricing in only one potential cut by December 2024. This shift comes amidst an environment where inflation data is trending upwards, challenging the Federal Reserve’s position and potentially leading to a more cautious approach from Jerome Powell, the Fed Chairman. “For the first time in recent memory, the market is calling the Fed’s bluff, quickly front-running the idea that the Fed may not cut at all in 2024,” noted Ted. #2 Cyclical Bitcoin Correction Phase Following an exceptional rally since the year’s start, the market is undergoing a natural correction phase. Prior to the price crash, Charles Edwards, founder of Capriole Investments, noted: “We are a day short of breaking the record set in 2011 for days without a meaningful dip [-25%],” emphasizing the extraordinary nature of Bitcoin’s recent performance. Scott Melker, known as “The Wolf Of All Streets,” highlighted technical indicators that suggested an impending correction. “Broke and retested range lows as resistance. […] My biggest concern I have been discussing for months [was] that RSI never made the trip to oversold. Almost there now, all lower time frames oversold. This is still ONLY A 23% correction, very shallow for a bull market and consistent with other corrections on this run. We are yet to see a 30-40% pull back during this bull market, like those of the past. $BTC Daily Broke and retested range lows as resistance. Nothing but air until around $52,000 on the chart. My biggest concern I have been discussing for months (in newsletter) is that RSI never made the trip to oversold. Almost there now, all lower time frames oversold. This pic.twitter.com/5YZTWipBo8 — The Wolf Of All Streets (@scottmelker) May 1, 2024 #3 Profit-Taking Traditional finance markets and seasoned investors are seizing the opportunity to take profits following substantial gains. “TradFi/Boomers are taking profits: CME Open Interest is decreasing rapidly, April 29th 135,6k coins, April 30th 123,9k coins, topped around 170.4k coins (March 20th), explained crypto analyst RunnerXBT. This trend confirms a broader profit-taking strategy post significant events like the ETF approval and the anticipation around the Bitcoin halving. “That […] confirms my thesis that a lot of these guys longed in October 2023 because of ETF approval and BTC halving, trade played out and now they are taking profits (yes they are still up a lot), because they longed BTC not dead altcoins. TradFi/Boomers are taking profits CME Open Interest is decreasing rapidlyApril 29th 135,6k coinsApril 30th 123,9k coins Topped around 170.4k coins (March 20th) That at least for me confirms my thesis that a lot of these guys longed in October 2023 because of ETF approval pic.twitter.com/M8KY1NfCtK — RunnerXBT (@RunnerXBT) May 1, 2024 #4 US ETF Flows And Hong Kong Disappointment The dynamics surrounding spot Bitcoin ETFs have shown significant strains, evidenced by recent activities in both US and Hong Kong markets. In the United States, Bitcoin exchange-traded funds (ETFs) faced substantial outflows, indicating a cooling investor sentiment. Related Reading: USDT Dominance Falling, Analyst Predicts Bitcoin To Reach $80,000 According to recent data, the total outflows from US spot Bitcoin ETFs amounted to $161.6 million. Notably, the Grayscale Bitcoin Trust (GBTC) experienced outflows of $93.2 million, while Fidelity and Bitwise registered outflows of $35.3 million and $34.3 million, respectively. BlackRock had zero net flows once again. These numbers suggest a retreat in institutional interest, which has traditionally been a bulwark against price volatility. Parallel to the US, the debut of Bitcoin ETFs in Hong Kong also faltered significantly below expectations. Six newly launched ETFs, intended to capture both Bitcoin and Ethereum markets, collectively reached just $11 million in trading volume, starkly underperforming against the anticipated $100 million. The spot Bitcoin ETFs accounted for $8.5 million in trading volume. This was markedly lower than the launch day volumes of US-based spot Bitcoin ETFs, which had reached $655 million on their first day. #5 Long Liquidations The market has also been impacted by substantial long liquidations, with a total of $451.28 million liquidated in the last 24 hours alone. The largest single liquidation was an ETH-USDT-SWAP on OKX valued at $6.07 million, but Bitcoin-specific liquidations were significant as well, totaling $143.04 million, according to data from CoinGlass. These liquidations have amplified the selling pressure on Bitcoin. At press time, BTC traded at $57,715. Featured image from iStock, chart from TradingView.com

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Bitcoin Price Just Crashed 7% On Trumps Tariff Shock

Author: Jake Simmons

United Kingdom

Source: NewsBTC

Apr 04, 2025 12:05

Bitcoin Price Just Crashed 7% On Trumps Tariff Shock

The Bitcoin price plunged by 7.2%from $88,526 to $82,150within the span of four hours following the reciprocal tariff announcement by US President Donald Trump on Wednesday. The precipitous drop aligns with a broader market rout set off by what has been described as one of the largest tariff packages in modern US history. Bitcoin Crashes After Trumps Tariff Bombshell On Wednesday afternoon, markets were jolted by a sweeping set of reciprocal tariffs that President Trump claimed would be levied on 185 countries all at once. The news sent ripples across global finance, with the S&P 500 futures market reportedly shedding $2 trillion of market capitalization in under 15 minutes. According to The Kobeissi Letter (via X): Reciprocal tariffs are officially HERE: President Trump just announced tariffs on 185 countries AT ONCE, one of the largest tariffs in US history. S&P 500 futures erased -$2 TRILLION of market cap in under 15 minutes. Related Reading: Bitcoins Fate Hinges on This Critical Dead Cross Signal Whats Next for BTC? The initial press coverage noted a 10% baseline tariff. However, as Trump spoke, the schemes complexity and scope became more apparent. He clarified that tariffs would be reciprocal but set to half of whatever rate another country currently imposes on US goodsa figure well beyond the 10% baseline in many cases. China, for instance, reportedly applies 67% tariffs on certain imports from the United States, suggesting a 34% tariff reciprocally aimed at Chinese imports. Meanwhile, the European Union could face a 20% tariff. This is VASTLY different than a 10% tariff across the board, The Kobeissi Letter pointed out, adding that these significantly higher rates created massive volatility. At one point in Trumps announcement, the S&P 500 futures reversed from being up 2% to dropping 4%an abrupt 6-percentage-point swing in under 20 minutes. By the time the Make America Wealthy Again Event concluded, the markets had sustained those losses, with Nasdaq 100 futures indicating a potential 500-point decline from prior levels. Bitcoin, which was up 8.9% since Monday morning, instantly experienced the same turmoil, shedding 7.2% of its value. Julio Moreno, Head of Research at CryptoQuant, remarked via X: I hope Bitcoiners learn that Trumps tariffs are a net negative for Bitcoin and the US economy. Related Reading: Is The Bitcoin Bull Run Over? Watch This Key Price He further elaborated: Trump has introduced too much uncertainty to the world economy with his tariffs. Theres a high enough chance of recession if the tariffs last long enough. This of course has hit Bitcoin and crypto prices in spite of a positive regulatory environment and [the Strategic Bitcoin Reserve]. Economic Projections While the precise long-term effects remain unclear, several prominent institutions have already issued forecasts. JPMorgan analysts warn: On a static basis, todays announcement would raise just under $400 billion in revenue, or about 1.3% of GDP, which would be the largest tax increase since the Revenue Act of 1968. We estimate that todays announced measures could boost PCE prices by 11.5% this year… This impact alone could take the economy perilously close to slipping into recession. And this is before accounting for the additional hits to gross exports and to investment spending. Simultaneously, The Kobeissi Letter noted that the average US tariff rateonce the new set of duties is enforcedcould exceed levels not seen since World War II. They cautioned that the White Houses targeted tariff revenue of $600 billion per year may be optimistic, suggesting only half that amount might materialize based on current data. Additional exemptionssuch as copper, pharmaceuticals, semiconductors, and lumberamplified the confusion, indicating that the tariffs will vary widely by sector and country of origin. UBS, as quoted by The Kobeissi Letter, also raised the alarm about inflation: BREAKING: UBS says a permanent implementation of President Trumps reciprocal tariffs would result in inflation rising to 5%. This would be a result of prices rising to adjust to the higher costs of imports. We are on the verge of 5% inflation and negative GDP growth. Although President Trump hinted at forthcoming largest tax cuts in American history, markets did not bounce back on that news. He specified that Medicare, Medicaid, and Social Security benefits would be spared from cuts, but investors and analysts appeared more focused on the immediate shock from the tariff package. At press time, BTC recovered to $83,207. Featured image created with DALL.E, chart from TradingView.com

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Why Is Bitcoin Price Down Today? 3 Key Reasons

Author: Jake Simmons

United Kingdom

Source: NewsBTC

Mar 16, 2024 12:05

Why Is Bitcoin Price Down Today? 3 Key Reasons

Today’s Bitcoin price movement is a confluence of factors including massive liquidations, macroeconomic pressures, and the impact of negative Coinbase Premium alongside Bitcoin ETF dynamics. These elements combined have led to a noticeable dip in Bitcoin’s price. #1 Long Liquidations Today’s Bitcoin market saw a significant price drop, initiated by a sweeping liquidation event on the futures market. Over the last 24 hours, crypto trader liquidations exceeded $682.54 million across more than 191,000 traders, according to Coinglass data. This surge in liquidations resulted in Bitcoin’s price plummeting by 8% in mere hours, falling from $72,000 to $66,500. Although there was a minor recovery, with Bitcoin’s price rebounding to the $68,000 level, it currently stands nearly 10% below its March 14 all-time high of $73,737. Related Reading: Crypto Markets Monster Cycle: $7.5 Trillion Market Value By 2025, Bitcoin Targets $150,000 A notable 80% of these liquidations were long positions, contributing to $544.99 million of the total. Short position liquidations made up the remaining $136.94 million, with Bitcoin longs alone accounting for $242.37 million in liquidations. #2 Macro Conditions Weighing On Bitcoin Price The macroeconomic landscape has placed additional pressure on Bitcoin’s value. Ted, a macro analyst known as @tedtalksmacro, highlighted on X the influence of macro conditions on the cryptocurrency market. He stated, “If BTC is digital gold, expect it to trade in lockstep with gold, however, with higher beta.” With the Federal Reserve’s meeting looming next week, macroeconomic factors are expected to take center stage temporarily. Yesterdays US Producer Price Index (PPI) data, showing a 0.6% increase in February and surpassing forecasts of 0.3 month-over-month, has caused a ripple effect with CPI recently also hotter than expected, leading to a rise in US bond yields. The benchmark 10-year rate saw an increase of 10 basis points to 4.29%, while two-year rates rose to 4.69% from 4.63%. These developments have led traders to adjust their expectations for the Federal Reserve’s interest rate policies in 2024. Related Reading: Brace For Impact: MicroStrategy Is Planning Another $500 Million Bitcoin Purchase Mohamed A. El-Erian, from Queens’ College, Cambridge University, Allianz, and Gramercy, remarked on the situation: “US government bond yields jumped today in reaction to yet another (slightly) hotter-than-expected inflation print (this time PPI).” This suggests a growing awareness of the challenges that persistent inflation poses to achieving the Fed’s 2% inflation target. #3 Negative Coinbase Premium / Quiet Bitcoin ETF Day The decline of Bitcoin below the $70,000 threshold is also attributed to the “Coinbase Premium” – the exchange which custodies the majority of all spot Bitcoin ETFs – dipping into negative territory for the first time since February 26, indicating a bearish sentiment from US markets. This phenomenon is likely a consequence of significant sales of Grayscale GBTC, while the spot ETF experienced relatively calm activity. Following a record $1 billion net inflow day for the spot ETF on March 12, inflows dropped to just $132.7 million recently, with Blackrock contributing the lion’s share at $345.4 million. Meanwhile, Fidelity and ARK saw minimal inflows of $13.7 million and $3.5 million respectively, after a previously strong week. GBTC outflows were reported at $257.1 million, aligning with average levels. Crypto analyst WhalePanda commented on the situation, noting that despite the reduced inflow, “$132.7 million is still 2 full days of mining rewards.” He suggests a potential rebound in the market, stating, “We’re just ranging now and overleveraged people getting margin called. I guess the next move up is for next week.” At press time, BTC traded at $67,916. Featured image created with DALL·E, chart from TradingView.com

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Bitcoin Price Slides Below $70,000: These Are The Key Reasons

Author: Jake Simmons

United Kingdom

Source: NewsBTC

Nov 02, 2024 12:05

Bitcoin Price Slides Below $70,000: These Are The Key Reasons

The Bitcoin (BTC) price has experienced a significant downturn over the past 24 hours, falling below the critical $70,000 threshold. After reaching a peak of $73,620 on Tuesday, the cryptocurrency has declined by approximately 5.7%, hitting a low of $68,830 on Friday. Analysts point to several key factors behind this decline: #1 Risk-Off Sentiment Ahead of US Election The timing of Bitcoin’s price drop coincides with a narrowing lead for former President Donald Trump over Democratic candidate Vice President Kamala Harris in prediction markets such as Polymarket and Kalshi, where users bet on election outcomes. Bitcoin has been considered a “Trump hedge” due to the former president’s strong advocacy for the cryptocurrency sector. Donald Trump has proposed establishing a “strategic Bitcoin reserve” in the United States if re-elected. Speaking at the Bitcoin 2024 Conference, he outlined plans to retain all Bitcoin currently held or acquired by the US government as part of this reserve. This initiative is a core element of his campaign to strengthen the US as a leader, aiming to make the country the “crypto capital of the planet.” Related Reading: Can Bitcoin Hit $200,000 Only If The Dollar Falls? Bitwise CIO Answers Earlier in the week, when Trump’s lead over Harris was more substantial, Bitcoin neared its all-time high of $73,777. The shrinking of Trump’s lead appears to have prompted investors to adopt a risk-off stance, contributing to the price decline. Crypto analyst HornHairs noted that derisking before elections has precedent. Derisking into the election 5-6 days before it takes place happened in both 2020 and 2016. Price then went on to never retest the lows set the week before the election ever again. Be careful what you sell here, he remarked via X. #2 S&P 500 Loses 3-Month Trendline The correlation between Bitcoin and traditional financial markets may have also influenced BTCs price movement. The S&P 500 has fallen to its lowest level since October 9, potentially affecting investor sentiment in the crypto space. Analysts from The Kobeissi Letter observed that despite major tech companies like Apple reporting strong earnings, their stock prices have declined. “Yet another tech giant to beat earnings but trade lower,” they noted, adding that technology stocks faced widespread selling even as Meta, Amazon, and Apple exceeded earnings expectations. They added, It appears that markets are de-risking ahead of the election next week. Brace for volatility. Related Reading: BlackRocks Bitcoin ETF Reaches 2% Of Total BTC Supply Amid Record Inflows Crypto trader Marco Johanning highlighted concerns about the S&P 500 losing its three-month trendline. Given that the S&P 500 lost the 3-months trendline yesterday, it looks more like a potential selloff before the US election on Tuesday and lower prices in the short term. The perfect bounce level is the 7-month trendline (blue). I don’t want to see prices below the POC/key level around 63k (red), he wrote via X. #3 Leverage Flush Out A significant unwinding of leveraged positions in the markets has also contributed to Bitcoin’s price decline. The market correction appears to be a healthy response to an overextension driven by leverage. Renowned crypto analyst Miles Deutscher noted: This pullback is normal (and expected). Market was looking overextended the last few days, and largely driven by leverage. Still not buying heavy as it isn’t a full cascade yetwill wait for one of those days around the election. Not a bad DCA day for certain coins tho. Austin Reid, Global Head of Revenue & Business at crypto prime brokerage firm FalconX, pointed out that the crypto derivatives market was “on fire” ahead of the election, with futures open interest for BTC, ETH, and SOL crossing the $50 billion mark for the first time. On-chain analyst Axel Adler Jr reported that open interest was reduced by $2.1 billion, implying a significant leverage flush out. According to data from Coinglass, over the past 24 hours, 93,864 traders were liquidated, with total liquidations amounting to $286.73 million. The largest single liquidation order occurred on Binance’s BTCUSDT pair, valued at $11.26 million. For Bitcoin alone, $81.38 million in long positions were liquidatedthe largest amount since October 1. At press time, BTC traded at $69,446. Featured image created with DALL.E, chart from TradingView.com

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Bullish Bitcoin traders switch sides and target new BTC lows under $60K

Author: Cointelegraph by Nancy Lubale

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