Bitcoin
Why did the price of Bitcoin (BTC) fall below $60,000?
Bitcoin (BTC) Price plunged more than 4% on Wednesday, hitting a daily low of around $59,712 during the early New York session. This unexpected 3.3% drop in the cryptocurrency market, bringing its value to approximately $2.34 trillion, resulted in more than $140 million in forced long liquidations.
As the altcoin sector faces significant losses over the past 24 hours, many investors have turned to stablecoins for stability. Recent data from crypto oracles shows that the total stablecoin market, now valued at around $160 billion, has seen an average daily trading volume of over $52 billion.
In contrast, Bitcoin and Ethereum combined reported an average daily trading volume of approximately $38 billion.
Main Reasons Behind Bitcoin Price Drop
Upcoming high-impact news
Later today, the U.S. Department of Labor will release jobless claims, which is a strong indicator of economic health. In addition, the U.S. Federal Reserve will release the minutes of its FOMC meeting, which will shed much-needed light on the economic outlook.
Notably, the Fed is expected to remain dovish ahead of the US general election and initiate interest rate cuts.
Spot BTC ETFs underperform
O US Spot Bitcoin ETFs have seen notable fluctuations in cash flows in the recent past. After five days of positive cash inflows, US spot Bitcoin ETFs saw a total cash outflow of around $14 million on Tuesday.
The drop in demand for spot Bitcoin ETFs amid the Upcoming Mt.Gox distribution and increased German government sales weighed significantly on optimistic sentiment.
Ethereum ETF listing anticipated in sight
The listing of approved Ethereum spot ETFs is expected to happen tomorrow, which will put the altcoin market in a bigger spotlight. Bitcoin’s dominance has already been forming a macro reversal pattern, which will accelerate the ongoing rotation of crypto money into the altcoin industry.
Read too: Whale Selling Drives Crypto Market Down: LDO, AAVE, UNI, FXS Trading in the Red
Market dynamics are evolving rapidly, with each of these factors playing a crucial role in the current crypto landscape. Investors and analysts will be closely watching these developments as they unfold.