🔥What Caused Bitcoin (BTC) to Collapse to $66K?

Bitcoin took a tumble to $66,013 on most major exchanges today. This drop follows six consecutive months of gains, tying a record set back in 2012.

Currently, Bitcoin sits at $66,761, down over 4%.

So, why the sudden crash?

Bitcoin ETFs saw significant outflows, with Grayscale's GBTC losing $302 million on April 1 alone—more than anticipated, says ETF expert James Seyffart. Overall, Bitcoin ETFs saw a net outflow of $85.7 million on Monday, with BlackRock's and Fidelity's products unable to offset GBTC's losses.

Additionally, bond traders forecasting fewer Federal Reserve rate cuts could be impacting Bitcoin's price. Odds of a June rate cut dropping below 50% are applying pressure on assets like Bitcoin that usually gain from looser monetary policy. Federal Reserve official Christopher Waller suggested postponing rate cuts due to disappointing inflation data, with only a minority of Fed officials backing three rate cuts in 2024, as reported by the Financial Times. Atlanta Federal Reserve Bank President Raphael Bostic also hinted at just one rate cut this year.

Crypto liquidation adds to the turbulence, with over $500 million wiped out in the past 24 hours. Long positions bore the brunt, accounting for $417 million of the losses, affecting over 155,000 traders. The largest single liquidation order amounted to a staggering $7.48 million.
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