💙DiDi Finance morning report
🧡Bitcoin market dynamics: analysis of reasons for sharp price decline
🔸Key price dynamics
The price of Bitcoin fell below the $70,000 mark today, with up to $300 million in market value wiped out within an hour.
🔸Market influencing factors
Mainly affected by strong U.S. employment data, the market is concerned about the reduced possibility of the Federal Reserve cutting interest rates, causing interest rates and the U.S. dollar to rise, putting pressure on risky assets such as cryptocurrencies.
The sharp decline in GameStop stock also affected the overall sentiment of the cryptocurrency market, driving the prices of other meme coins such as DOGE, SHIB, and PEPE to fall.
🔸Changes in market indicators
Bitcoin dominance rate increased to 53.69%, indicating the current market correction trend.
The Crypto Fear and Greed Index fell to 77. Although the market sentiment is still "greedy", investor sentiment is slightly cautious.
CME Bitcoin futures open interest fell 2.19%, indicating that some traders are closing positions in response to market volatility.
🔸Long-term trend observation
It is worth noting that Bitcoin ETFs continue to accumulate, indicating that long-term investors are still optimistic about Bitcoin’s future development potential, but short-term market fluctuations have failed to sustain the rise in Bitcoin prices.
