#BTCNextMove Reasons for Bitcoin’s Decline

Leasing long positions is one of the important reasons. The market has seen a significant increase in the liquidation of Bitcoin long positions, with $85.4 million worth of these positions being liquidated, which has increased selling pressure on the price. These liquidations occur when the market price reaches the liquidation price of leveraged positions, which leads to automatic selling to cover losses, thus further depressing the price and causing high volatility in the market.

The continued mining collapse is also a second reason, as the mining collapse refers to a situation where miners start selling mined Bitcoin to cover operating costs due to unprofitability. This increases the supply of Bitcoin in the market and puts additional pressure on prices. The mining collapse is a crucial stage to watch, especially after the Bitcoin reward halving events that reduce miners’ rewards by half, which increases profitability pressure.