Bitcoin's price can be influenced by a variety of factors. Recently, there have been a few key reasons for its decline:1
Market Volatility: Increased volatility in both crypto and traditional markets has played a significant role. For instance, the emergence of DeepSeek, a Chinese AI platform, has shaken up the tech industry, causing uncertainty and impacting Bitcoin's price2.
Pre-FOMC De-Risking: Investors often reevaluate their portfolios before Federal Open Market Committee (FOMC) meetings, leading to selling pressure on riskier assets like Bitcoin.
Absence of New Positive Catalysts: Following President Donald Trump's inaugural crypto executive order, there hasn't been much fresh bullish news, leaving traders wanting more.
Long Liquidations: A surge in long liquidations has intensified the downward pressure on Bitcoin's price.
These factors combined have contributed to Bitcoin's recent price drop. Do you have any specific questions about Bitcoin or cryptocurrency in general?
