Bitcoin Plunge Explained: 4 Reasons Behind The Big Bitcoin Dump
Today, Bitcoin took a major hit, dragging the entire crypto market down with it. Here are the four main reasons behind the crash.
1. US Unemployment Report
The latest unemployment report revealed a rise to 4%, sparking fear and causing Bitcoin to plummet from $72K to $68K, triggering a market-wide selloff.
2. Mt. Gox Bitcoin Transfer
Concerns arose as $9 billion worth of Bitcoin was moved from the defunct Mt. Gox exchange. The uncertainty over these funds potentially hitting the market spooked investors.
3. Slowing Bitcoin ETF Inflows:
Spot Bitcoin ETFs saw slowing growth, signaling investor caution and hesitation to invest heavily in the current market conditions.
4. Panic Selling & High Greed Levels:
Investor panic coupled with a high greed index of 74 led to massive sell-offs by both SPOT ETF investors and smaller traders.
The market might see a slight recovery, but another sudden drop could push Bitcoin down to the $67K support level.
