Market Experts Commented on the Latest Drops in Bitcoin (BTC)!
What is the reason for the recent declines in the cryptocurrency industry?
This week, the market sharply reversed the rallies triggered by Trump in the crypto sector, causing the BTC price to retreat from a post-speech high of $70,000 to almost $60,000 this morning.
Here are the reasons for the recent decline in the crypto market:
The market experienced significant BTC supply immediately after Trump's speech. US Government (28,000 BTC), Mt.Gox distribution (33,960 BTC), Genesis creditor distribution (1.5 billion USD in BTC and ETH)
Mining difficulty reached an all-time high with a 10.5% increase, which naturally increased the pressure on miners to sell.
Macroeconomic negativities resulting from the high unemployment rate (actual 4.3%, expected 4.1%) had repercussions on crypto and led to increased expectations of recession in the future.
The VIX rose above 28 today, the highest level since the regional banking crisis in March 2023.
Apart from these developments, the conflicts between Israel and Iran had a very bad impact on the cryptocurrency industry as well as the traditional financial markets.
