$BTC
Below are the main reasons that led to a strong decline in the price of Bitcoin and cryptocurrencies today:
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🧩 1. Geopolitical Tensions in the Middle East
News of escalation between Israel and Iran, such as military strikes, has led to a decline in investor sentiment and a shift towards safe assets, which has intensified pressure on risk assets like Bitcoin.
🏦 2. Decreased Expectations for U.S. Interest Rate Cuts
Recent inflation data (CPI and PPI) have lowered expectations from the Federal Reserve for interest rate cuts in June, which has strengthened the dollar and weakened the appeal of low-yield assets like cryptocurrencies.
💧 3. Widespread Liquidations in Futures
Over $1 billion in long positions were liquidated within 24 hours, with about $448 million of that in Bitcoin alone, causing a rapid downward dynamic.
🐳 4. Actions of "Whales" and Instant Technical Corrections
Massive sell-offs by large traders – known as "whales" – coincided with breaches of key technical support levels, exacerbating the price decline.
Bitcoin faced resistance at the $108,000-$110,000 level, and with the breach of support at $106,000, the pressure increased.
🔍 Summary
1. Geopolitical tensions trigger a wave of selling in risky assets.
2. Diminishing chances of interest rate cuts strengthen the dollar and pressure digital assets.