The major cryptocurrency rebounded today and fell slightly after a corrective move, and there are reasons for this decline, the most important of which are:
1. Concerns about global economic conditions
Recent economic tensions, especially due to ongoing inflation and expectations of interest rate hikes in some countries, have pushed investors to shy away from high-risk assets like Bitcoin.
2. Outflows from Bitcoin ETF funds
Bitcoin exchange-traded funds (ETFs) have seen significant outflows in recent days, indicating a decline in institutional investor confidence, which has led to additional selling pressure.
3. Bitcoin's correlation with stock markets
Bitcoin's performance has become more correlated with stock markets, especially the American ones. With indices like S&P 500 and Nasdaq declining recently, digital currencies have also been affected by the same negative trend.
4. Liquidation of leveraged positions
Many traders use leverage, and with the rapid price drop, hundreds of millions of dollars in long positions were liquidated, exacerbating the decline.
$BTC
#BinanceHODLerTree
1. Concerns about global economic conditions
Recent economic tensions, especially due to ongoing inflation and expectations of interest rate hikes in some countries, have pushed investors to shy away from high-risk assets like Bitcoin.
2. Outflows from Bitcoin ETF funds
Bitcoin exchange-traded funds (ETFs) have seen significant outflows in recent days, indicating a decline in institutional investor confidence, which has led to additional selling pressure.
3. Bitcoin's correlation with stock markets
Bitcoin's performance has become more correlated with stock markets, especially the American ones. With indices like S&P 500 and Nasdaq declining recently, digital currencies have also been affected by the same negative trend.
4. Liquidation of leveraged positions
Many traders use leverage, and with the rapid price drop, hundreds of millions of dollars in long positions were liquidated, exacerbating the decline.
$BTC
#BinanceHODLerTree
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BTC
113,485.19
-1.62%