BTC Price Drops 2.26% Amid $400M Liquidations and Regulatory Shifts Impacting Market Sentiment

Bitcoin (BTCUSDT) declined by 2.26% over the past 24 hours, with the price falling from 121,877.62 to 119,120.81 on Binance. The price drop is primarily attributed to increased volatility around key technical levels, significant institutional inflows and outflows from Bitcoin ETFs, and recent U.S. regulatory changes permitting crypto assets in 401(k) retirement accounts, which have influenced market sentiment and led to approximately $400 million in liquidations. Trading volume reached $67.91 billion, up 0.30% from the previous day, while Bitcoin’s market capitalization stands at $2.37 trillion with a circulating supply of 20 million BTC. Despite the short-term dip, Bitcoin remains dominant in the crypto market, accounting for about 61% of total market capitalization.