Bitcoin has experienced a significant price drop in recent days due to several main factors:
1.Sales of Bitcoin by SpaceX: A report from the Wall Street Journal revealed that SpaceX may have sold some or all of their Bitcoin holdings worth $373 million. A sale by a large entity like this could create significant pricing pressure in the market (Cointelegraph).
2.Interest Rate Concerns: Expectations of interest rate hikes by the US Federal Reserve are also affecting the crypto market. When interest rates are expected to remain high, this tends to reduce investors' interest in risky assets such as Bitcoin (Cointelegraph).
3.Increased Government Bond Yields: An increase in bond yields indicates a reduction in liquidity in the market in general, which may lead to a decline in asset prices including Bitcoin (CoinDesk).
4.Chinese Yuan Devaluation: The risk of Chinese Yuan devaluation also contributes to crypto market instability. Previously, the devaluation of the Yuan had caused a significant drop in Bitcoin prices (CoinDesk).
5.Long Position Liquidation: Data shows that more than $427 million in Bitcoin long positions were liquidated within four hours, adding to selling pressure in the market (CoinDesk).
These factors collectively led to the recent decline in Bitcoin prices.
