Market Liquidations: Over the past 24 hours, a large number of long and short positions have been liquidated, with over $3 million in longs and $30 million in shorts reportedly liquidated, with Ethereum liquidations reaching $46 million.

SEC lawsuit: The U.S. Securities and Exchange Commission (SEC) filed a lawsuit against Coinbase and Binance, accusing them of selling unregistered securities, including multiple cryptocurrencies including Ethereum. This news triggered a panic sell-off in the market, causing prices to plummet

Liquidity withdrawal: Market makers such as Jump Crypto and Cumberland withdrew a large amount of liquidity from the market, causing the market to fall further. The large withdrawal of funds by these market makers made the market more unstable

Large-scale selling: Some large holders (whales) sold a large amount of Ethereum during the market decline, exacerbating the price decline. In particular, institutions such as Alameda Research and Celsius Network transferred a large amount of Ethereum to centralized exchanges for selling during this period.

The reasons why BTC plummeted are as follows

Market Liquidations: The crypto market experienced a massive liquidation event totaling $740 million, of which approximately $274 million was liquidated in Bitcoin. This reflects the bearish sentiment in the market, further exacerbating price volatility.

Coinbase outage: Coinbase's outage caused trading to be suspended, triggering panic selling in the market. During the outage, the price of Bitcoin plummeted from $64,000 to $59,000 in just 15 minutes, with a market value loss of $100 billion.

Investors are cautious: As Bitcoin has experienced a significant rise, some investors have chosen to take profits at high points. Additionally, as Bitcoin prices surpassed $60,000, some market participants began to worry about a possible pullback, causing caution to spread.

ETF outflows: Recently, Bitcoin spot ETFs have experienced significant outflows, especially Grayscale’s GBTC, which has experienced its highest outflow since its inception, reaching $642 million. This trend further erodes the confidence of market participants