Reason of Breakdown of BTC.
Bitcoin's recent price breakdown is primarily influenced by a combination of factors:
1. Geopolitical Tensions: Escalating tensions in the Middle East (specifically between Iran and Israel) have led investors to retreat from risk assets like cryptocurrencies, opting for safer havens.
2. Macroeconomic Uncertainty: Concerns about global economic conditions, inflation, and interest rates are making investors cautious about volatile assets.
3. Declining Demand: There has been a observed decrease in both retail and institutional demand for Bitcoin, including dwindling inflows into Bitcoin Spot ETFs, and even some outflows.
4. Technical Factors and Liquidations: Bitcoin has faced strong resistance at certain price levels, leading to failed breakouts and a cascade of long position liquidations, which further pushes the price down. Some analysts also point to technical indicators suggesting a potential deeper correction.
