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Why is the price of Bitcoin (BTC) down today? Here are the main reasons
The cryptocurrency market has seen a slight decline, falling 2.2% over the past day to settle at around $2.36 trillion. Bitcoin led the decline, with trading volume contracting significantly. But interestingly, the data suggests that many traders are reluctant to move their assets, fearing missing out on a potential rebound.
Curious to know more? Dive right in.
Fear or FOMO?
Despite this setback, the market has recently seen some great successes, such as the halving of events and the approval of Spot ETF on BTC. Right now, Bitcoin price is testing support levels between $61,000 and $59,600, a crucial moment for market sentiment and future direction.
If bulls fail to hold this support, experts warn of a possible sell-off in the coming months, followed by a push towards a new all-time high (ATH).
Why do markets bleed?
Interest rate release by the FOMC and Fed
As April comes to a close, the market is gearing up for some big moves, especially as the US Federal Reserve announces its long-awaited interest rate decision.
Anticipating potential turbulence, some traders are seeking safety in stablecoins. Meanwhile, over the past 24 hours, as much as $222 million has been wiped out of the cryptocurrency leverage market, highlighting the nervousness in the air.
Former Binance CEO faces prison sentence
Today is a crucial day as former Binance CEO Changepeng Zhao, or CZ, awaits sentencing after admitting to all charges against him. His fate could send shockwaves through the market, marking a significant shift. Furthermore, Binance will now be under close surveillance by US financial agencies for the next five years.
Hong Kong Crypto ETF Debuts: A Lukewarm Reception
Although Hong Kong recently gave the green light to the discovery of Bitcoin and Ether ETFs, their debut did not live up to expectations. Hong Kong’s six cryptocurrency ETFs saw only about $11 million traded on the first day, a far cry from the expected $100 million.
Interestingly, the total trading volume for these ETFs in Hong Kong is much lower than their US counterparts, with spot BTC ETFs leading the way with around $655 million traded on the first day.
Also check: Why did the price of Bitcoin drop in April? What will be the future of the BTC price?
Will the bulls defend their territory or are we in for a wild ride before the next peak? Stay tuned to Coinpedia for further updates!