$BTC Bitcoin Plummets: What’s Happening?

In recent days, the cryptocurrency market has witnessed a sharp decline, with Bitcoin plunging to its lowest level in months. So what has caused this significant drop in Bitcoin's price?

1. U.S. Monetary and Tax Policies

The U.S. government, under President Donald Trump, is considering major changes in tax and trade policies. This has created uncertainty in the financial markets, affecting investor confidence in cryptocurrencies.

2. Major Hack on Bybit Exchange

Recently, a cyberattack on the Bybit exchange resulted in the loss of approximately $1.5 billion worth of Ethereum. This incident has raised concerns about the security of crypto trading platforms, prompting many investors to withdraw funds and increasing selling pressure in the market.

3. Pressure from Bitcoin ETFs

Bitcoin ETFs, which had been a major driver of Bitcoin’s price surge in previous months, are now experiencing massive outflows. Over $528 million was withdrawn from these funds in the past week, contributing to Bitcoin's price decline.

4. The Collapse of Arbitrage Trading

Many investors use arbitrage trading strategies to profit from price fluctuations. However, market imbalances have led to massive Bitcoin sell-offs, with over $1.9 billion liquidated in just a few days.

Consequences and Outlook

The sharp decline in Bitcoin’s price has not only impacted the cryptocurrency market but also created panic among investors. However, many experts remain optimistic that after this correction phase, Bitcoin could find a new equilibrium and recover.

Investors should exercise caution during this period of high market volatility, stay updated on macroeconomic news, and adopt appropriate risk management strategies. Is this a buying opportunity, or will Bitcoin continue to fall? Let’s wait and see how the market unfolds!