Bitcoin Faces Major Decline, Potential Drop to $40,000

Bitcoin (BTC) has experienced a dramatic fall, dropping over 16% in the last 24 hours and breaking below the crucial $57,000 support level. This sudden decline has raised alarms in the crypto community, with experts now predicting a potential drop to $40,000.

According to leading on-chain data and analytics provider CryptoQuant, this breach of support signals a troubling trend. The recent drop has pushed traders into their most negative unrealized profit margins since November 2022.

CryptoQuant warns that Bitcoin could drop to $40,000 amid recent volatility. The critical support level is at $47,140, with 900,000 addresses holding 489,000 BTC. In the last 24 hours, $1.06 billion has been wiped out, with bullish investors losing $900 million.The recent panic selling in Bitcoin and the broader crypto market has been influenced by the Bank of Japan's decision to raise interest rates from 0% to 0.25%, along with growing fears of a U.S. recession. Bitcoin's price fell to $49,112 but has since recovered slightly to $52,982, marking a nearly 16% drop.

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