🔽📈🔽Why BTC dropped drastically?

♦️Economic Data and Rate Cut Expectations: The release of the ISM PMI data, which indicated higher services pricing, led investors to pare back their expectations for rate cuts by the Federal Reserve. This adjustment in expectations caused a significant spike in U.S. Treasury yields, traditionally a bearish signal for risk assets like cryptocurrencies. The unexpected economic data spooked investors, leading to a sell-off in Bitcoin.

♦️Market Sentiment and Liquidations: High levels of market greed often precede pullbacks, and Bitcoin's sharp decline post a new all-time high might be indicative of this. The market saw over a billion dollars in open interest wiped out, with significant liquidations contributing to the downward pressure on Bitcoin's price.

♦️Global Economic Concerns: Rumors about health crises in China, like the spread of the HMPV virus, have also been mentioned as potential contributors to the sell-off, although these claims should be treated with caution as they come from social media posts and are not verified through official channels.

♦️Technical Indicators and Market Dynamics: Bitcoin fell below key moving averages, which are often used by traders as signals for market direction. This, combined with a surge in trading volume as more traders took short positions, further fueled the bearish momentum.