Why did the market suddenly crash?
Is Harris falsifying data?
Bitcoin has dropped about 4% in the past 24 hours, currently around 69280. After attempting to rebound to historical highs earlier this week, the October closing price is about 70000, below the monthly highest closing price of about 71297.
The altcoin market also experienced a similar adjustment pattern, leading to a total market capitalization decline of 5.2%. Due to increased volatility, nearly 300 million dollars were liquidated in the market, with about 247 million dollars involving long traders.
In the past 24 hours, Bitcoin's price lacked bullish momentum as most U.S. spot BTC ETF issuers experienced significant cash outflows. Aside from BlacRock's IBIT recording about 318 million dollars, the remaining five major spot BTC ETF issuers all saw significant cash outflows on Thursday.
Specifically, ARKB reported an outflow of 94 million dollars, while Fidelity's FBTC and Bitwise BITB experienced outflows of 75 million dollars each on Thursday. Therefore, the net cash inflow for U.S. spot BTC ETFs is about 32 million dollars, compared to nearly 2 billion dollars of net cash inflow in the previous two days.
Bitcoin reacted to the 2 billion dollars in options contracts expiring on Friday, although the scale is smaller than last month. According to data, the options trading volume on Deribit exchange was about 1.96 billion dollars in the past 24 hours.
In recent weeks, Bitcoin has steadily risen driven by high demand from institutional investors. However, the uncertainty brought by significant short-term news has caused some investors to hesitate, expecting increased volatility.
As a result, more investors accelerated profit-taking, dampening bullish sentiment.
For example, the cryptocurrency market expects Republican presidential candidate Donald Trump to win the 2024 election. Additionally, the Federal Reserve is expected to lower interest rates again next week.
Bitcoin prices encountered significant resistance above 73000, so a brief pullback is expected to rejuvenate bullish sentiment. From a technical analysis perspective, Bitcoin is expected to find solid support above 69000 to push for previous highs again.
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