Bitcoin
Why is the price of Bitcoin (BTC) falling? Crypto Settlement Reaches $93 Million
The price of Bitcoin (BTC) is experiencing very intense pressure, a trend that is dragging altcoins to new lows. With the reduction, the price of Bitcoin now changes hands at US$69,670.58, down 0.28% in 24 hours. This slight slip created a deep drop in other altcoins, especially memecoins like Floki.
Bitcoin downgrade triggers intense sell-off
As the price of Bitcoin fell, Ethereum (ETH) fell 1.20% to $3,670.56, Binance Coin (BNB), which recently recorded a new all-time high (ATH), fell 7.45%, to $622.28. Other major altcoins like Solana (SOL) and XRP also fell 1.53% and 0.53% to $159.45 and $0.4960.
With most altcoins correlated with Bitcoin, Toncoin (TON) showed an exception. The Telegram-backed digital currency managed to maintain its 1.28% increase to $7,176.
Of these BTC and altcoin trends, the combined crypto market liquidation exceeded $93.68 million. A total of 51,090 traders were caught in this sell-off in 24 hours. Bitcoin is leading this sell-off trend, with over $14.59 million drained. Ethereum and Solana appear in second and third place, with liquidations exceeding US$12.3 million and US$4.2 million, respectively.
Crypto market sell-offs are not new to the market as traders continue to hedge their bets through leveraged trades. Contrary to what has been observed in the market before this time, the combined market sell-off is growing, leaving experts to question what the main reason for the market reaction could be.
For what it’s worth, Bitcoin has the right incentives to grow. The US Federal Reserve is geared up for its 2-day monetary policy meeting, which could see the announcement of a rate cut. Other G7 central banks, including the Bank of Canada
and the European Central Bank (ECB) unveiled similar rate cuts last week.
Bitcoin recovery imminent
These rate cuts from G7 central banks are important growth triggers for risky assets, especially Bitcoin. With reduced rates in crucial financial markets, digital currency could be more attractive to institutional investors.
The gateway for this class of investors to adopt BTC was created through Spot Bitcoin ETF offers. From the United States to the United Kingdom, Australia, Hong Kong and Thailand, more nations are supporting the growth of this nascent asset.
All in all, Bitcoin recovery is imminent if market indices and spot BTC ETF accumulation continue.
See more information: Floki naming service goes live, will this trigger FLOKI price recovery?