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Why did the price of Bitcoin (BTC) drop below $60,000?
Bitcoin (BTC) Price plunged more than 4% on Wednesday, hitting a daily low of around $59,712 during the early New York session. This unexpected 3.3% decline in the cryptocurrency market, bringing its value to around $2.34 trillion, has caused over $140 million in forced long liquidations.
As the altcoin sector has seen significant losses over the past 24 hours, many investors have turned to stablecoins for stability. Recent data from cryptocurrency oracles shows that the total stablecoin market, now valued at around $160 billion, had an average daily trading volume of over $52 billion.
In contrast, Bitcoin and Ethereum together recorded an average daily trading volume of around $38 billion.
The main reasons for the Bitcoin price drop
Upcoming high impact news
Later today, the U.S. Department of Labor will release jobless claims, which is a strong indicator of economic health. Additionally, the U.S. Federal Reserve will release the minutes of its FOMC meeting, which will shed much-needed light on the economic outlook.
In particular, the Fed is expected to maintain an accommodative stance ahead of the US general election and initiate interest rate cuts.
Spot BTC ETFs Perform Weakly
THE US Bitcoin Spot ETFs have seen significant cash flow fluctuations in the recent past. After five days of positive cash flows, U.S. spot Bitcoin ETFs saw a total cash outflow of about $14 million on Tuesday.
Falling demand for spot Bitcoin ETFs in the middle of the Next Mt.Gox Distribution and increased selling by the German government weighed significantly on bullish sentiment.
Ethereum Spot ETF Expected Price
The approved Ethereum spot ETFs are scheduled to go live tomorrow, which will put the altcoin market in the spotlight. Bitcoin’s dominance has already formed a macro reversal pattern, which will accelerate the ongoing rotation of crypto cash into the altcoin sector.
Read also: Whale Sell-Off Sends Crypto Market Crashing: LDO, AAVE, UNI, FXS In Red
Market dynamics are evolving rapidly, with each of these factors playing a crucial role in the current cryptocurrency landscape. Investors and analysts will be closely watching these developments as they unfold.