Today, $BTC had a steep decrease, falling below $56,000 and reaching a weekly low of $55,600. This abrupt price decline is the result of multiple factors, some of which are unique occurrences affect cryptocurrencies and others that are indicative of larger market trends.The notable fall in the U.S. stock market is one of the main causes of the collapse in Bitcoin.
The NASDAQ plummeted by 3.26%, while the S&P 500 fell by 2.1%. Notably, a Department of Justice subpoena caused Nvidia, a significant player in the computing industry, to have a nearly 10% decline in its stock price. The main cause of these stock market drops is thought to b e worries about an impending recession, especially in light of unsatisfactory job data.
The unwinding of the Yen carry trade contributed to a notable decline in the Japanese stock market as well. Global markets have been impacted by this, which has increased pressure on Bitcoin and other cryptocurrencies.
A significant outflow of $288 million, the biggest in four months, has been reported by Bitcoin ETFs in addition to the general state of the market. Such withdrawals imply a retreat by investors, which can exacerbate selling pressure and fuel price drops.
Moreover, long Bitcoin holdings valued at almost $170 million were liquidated in the past day. Exchanges are forced to sell as a result of these liquidations, which exacerbates the declining trend.Although September has been a difficult month for Bitcoin, Q4 has often been positive. Investors believe that this pattern will hold, providing a chance for the bitcoin market to rise.
