What sentiment caused the price of $BTC to decline?
The recent decline in Bitcoin's price was caused by several key factors affecting market sentiment:
US Trade Tariff Policies: US President Donald Trump announced plans to impose new tariffs of 25% on imports from Canada and Mexico, and 10% on goods from China. This policy raised concerns about a global trade war, pushing investors away from risky assets like Bitcoin.
Bybit Crypto Exchange Hack: A major hack occurred on the Bybit crypto exchange, resulting in a loss of around $1.5 billion in Ether. This incident shook investor confidence in the security of digital asset platforms, thereby increasing selling pressure on Bitcoin.
Macroeconomic Uncertainty: Weak US economic reports and rising inflation added to uncertainty in the market. Federal Reserve Chair Jerome Powell's statements about the possibility of interest rates remaining high heightened investor concerns, leading them to avoid risky assets like Bitcoin.
Liquidation of Leverage Positions: The decline in Bitcoin's price was exacerbated by the forced liquidation of long positions from traders using high leverage. Over $150 million in long BTC positions were forced to be liquidated within four hours, accelerating the price drop.
The combination of these factors created bearish sentiment among investors, prompting sell-offs and causing the recent decline in Bitcoin's price.