Bitcoin$ drops 4% to $61,000, witnesses second-worst weekly decline; What's behind the plunge?
Here are some reasons behind Bitcoin's $BTC
recent plunge
- *Interest Rate*: Lower interest rates allow more cash to flow into more speculative assets like cryptocurrency, increasing their value.
- *Economic Indicators*: Despite the mixed bag of economic indicators, the persistent high inflation adds a layer of uncertainty, affecting the cryptocurrency market.
- *U.S. Securities and Exchange Commission (SEC) Approvals*: The approval of spot Ethereum ETFs and the recent decision on spot Bitcoin ETFs have not brought significant changes in the prices of Bitcoin.
- *Mt. Gox’s $9 Billion Bitcoin Transfer*: The transfer of approximately $9 billion in BTC from Mt. Gox’s cold wallet to an unknown address has raised dump fears in the market.