🟡 Why is crypto down today? Bitcoin sheds 4.3% in 24 hour trading.
Bitcoin (BTC) has declined by 4.3% over the past 24 hours, resulting in a widespread collapse across the broader crypto market, as investors exit the market at breakeven on the back of the recent recovery push.
The cryptocurrency market is witnessing a sharp decline following the latest rebound that saw multiple assets record double-digit gains. Bitcoin reclaimed the $66,000 price territory on April 15, with the global crypto market cap surging to $2.384 trillion.
However, following the $66,867 high yesterday, BTC witnessed a subsequent collapse, dropping to the higher spectrum of the $61,000 threshold before staging a recovery from this floor. Despite the push above this level, Bitcoin witnessed a 4% decline in the past 24 hours, trading at $63,250 at the time of writing.
Consequently, the crypto market has lost over $79 billion in valuation over the past day, with the global crypto market cap currently sitting at $2.243 trillion. One of the primary factors responsible for this sudden pullback is a surge in selloffs, as market participants rushed to exit the market at breakeven upon the rebound.
Notably, total volume across the market increased to $121 billion yesterday, representing a growth in trading activity. During a market downturn, a surge in trade volume suggests an increase in selloffs. Despite a slight drop, volume has remained above the $100 billion mark, currently amounting to $112.7 billion.
In addition, Coinglass data confirms that Bitcoin derivatives volume has increased by 10.31% in the last 24 hours to $98.1 billion as of press time, with the long/short ratio sitting at 0.9573. This figure indicates a confluence of increased derivatives trades and a predominant bearish sentiment.
The prevailing bearish pressure has persisted despite the upcoming halving event, expected to bolster Bitcoin’s price action by reducing the daily inflation rate.
