🚨 Breaking : Bitcoin's price has dropped below $66,000, a -5.6% decrease, due to four main reasons: a long liquidation event, a strengthening US Dollar Index (DXY), profit-taking by investors, and outflows from Bitcoin ETFs.
1. Long Liquidations: A significant deleveraging event led to a high number of long liquidations. This was driven by leveraged traders paying premiums, making the market susceptible to corrections.
2. DXY Impact: The DXY reached its highest level since November, indicating a stronger US dollar. Bitcoin's inverse correlation with the DXY may have shifted investor preference to safer assets.
3. Profit Taking: Investors took profits as Bitcoin hit $73,000, with over 352,000 BTC sold for profit. This behavior is typical in bull markets but creates resistance levels at price tops.
4. Bitcoin ETF Outflows: Notable outflows from Bitcoin ETFs, particularly Grayscale's GBTC, contributed to the price drop. However, positive inflows were reported for Blackrock's IBIT and Fidelity's FBTC.
Overall, while Bitcoin's price has decreased, market analysts suggest a potential rebound or restructuring as the market stabilizes.
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