Why Bitcoin Price Dropped Sharply TodayKey Points
Bitcoin price fell below $70,000, evaporating $300 million in one hour, mainly due to strong US employment data and GameStop stock decline. Bitcoin dominance rate rose to 53.69%, reflecting a market correction.
Crypto Fear and Greed Index fell to 77, and market sentiment is still "Greedy" CME Bitcoin futures open interest fell 2.19%, indicating that traders are closing positions.
Strong US employment data reduced the possibility of a Fed rate cut, leading to rising interest rates and the US dollar, which had a negative impact on risk assets including cryptocurrencies.
The sharp drop in GameStop stock also affected cryptocurrency market sentiment, causing other meme coins such as DOGE, SHIB and PEPE to fall in price Despite this, Bitcoin ETFs continued to accumulate, but failed to maintain the rise in Bitcoin prices.
