Odaily Planet Daily News QCP Capital pointed out in a recent market report that the market has experienced a sharp correction, with the price of Bitcoin falling from $70,000 to nearly $60,000. This decline was mainly caused by an unexpected surge in Bitcoin supply. There are several key events that caused this supply shock, including the release of about 28,000 Bitcoins by the US government, the distribution of 33,960 Bitcoins in the Mt Gox settlement agreement, and the distribution of $1.5 billion worth of Bitcoin and Ethereum by Genesis creditors. These factors have jointly exerted huge downward pressure on the market. In addition to the increase in supply, QCP also highlighted that the mining difficulty level has soared by 10.5% to an all-time high, which has put additional pressure on miners to liquidate their holdings. Macroeconomic indicators have also contributed to the bearish sentiment. QCP pointed out that the higher-than-expected 4.3% US unemployment rate and concerns about an impending recession have exacerbated investors' concerns. QCP analysts highlighted that the CBOE Volatility Index (VIX), a key measure of market volatility, surged above 28, its highest level since the regional banking crisis in March 2023, further fueling market unease. Despite turbulent market conditions, volatility for both Bitcoin and Ethereum remained relatively stable, with Bitcoin’s front-end volatility rising slightly from 45% to 48%, while the latter’s volatility remained unchanged. Market strategists interpreted this as a signal that despite recent turmoil, the market expects price volatility to stabilize in the coming months. (News.bitcoin)