Bitcoin Plummets! What Are the Causes and What Is the Impact?
Recently, the crypto market has been shaken again by a sharp decline in the price of Bitcoin (BTC). Investors are wondering what caused BTC to plummet and what the impact is on the crypto market as a whole. Let's dive in!
Causes of Bitcoin Price Decline
1. Global Sentiment and Macroeconomic Conditions
The price movement of Bitcoin is often influenced by global economic conditions. When inflation rises, interest rates increase, or there is economic uncertainty, many investors pull funds from risky assets like crypto and switch to safer assets.
2. Massive Sell-Off (Whale Selling)
Bitcoin has several "whales" or large holders of BTC. If they sell in large amounts, it can trigger panic selling among small investors, exacerbating the price decline.
3. Regulation and Government Policy
Announcements related to crypto regulation from major countries like the United States or China also affect the price of BTC. If there are policies deemed restrictive, the market tends to react negatively.
4. Liquidation in the Derivatives Market
The crypto market is also influenced by futures trading activity. When many long positions (bets that the price will rise) are liquidated, it can accelerate the price decline.
