After a long period of relative stability, Bitcoin plummeted more than 8% in a matter of hours, hitting a two-month low of $25,314. This decline caused an overall decline in the entire cryptocurrency sector, leading to more than $1 billion in liquidations. The main reason for this decline was concerns about prolonged high interest rates and insufficient activity in the cryptocurrency market.
Basic moments:
- Trends #Bitcoin in 2023: Bitcoin has already fallen to similar lows twice this year in January and March. However, each sharp drop was accompanied by a recovery.
- Reasons for the fall: One of the reasons for this week's fall was the market's excessive dependence on large transactions. A Wall Street Journal report that Elon Musk's SpaceX has sold its Bitcoin holdings has deepened the downturn.
- Regulatory Concerns: Many of the biggest news affecting the cryptocurrency world come from regulators in Washington or court decisions. Recent price declines are partly due to US actions against cryptocurrency exchanges.
