Why Bitcoin Price Dropped Below $67,000, According To Blockchain Firm

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On Friday, April 12, the cryptocurrency market took a sudden nose dive, causing Bitcoin‘s price and the value of other major assets to plummet sharply. For the past few days, Bitcoin had been hovering around the $67,000 mark with little movement. However, it dropped below this level for the first time in over a week.

Due to a sudden drop, the crypto market has experienced approximately $900 million worth of liquidations over the last day. This information comes from futures market data provided by Coinglass. The majority of these losses can be attributed to leveraged Bitcoin and Ether positions.

According to Santiment, an analysis firm specializing in on-chain data, they’ve identified the key reason for the recent drop in Bitcoin’s price and the broader crypto market slump.

Here’s Why BTC Price Fell Below $67,000 

Bitcoin’s price dropped around 5% in just one day, falling from over $70,000 to under $67,000 within a five-hour span. This marks the first time Bitcoin has dipped below $67,000 since April 4, as reported by blockchain intelligence firm Santiment.

Ether, the second-largest cryptocurrency, experienced a more significant decline, dropping nearly 8% within a day. This drop, along with Bitcoin’s performance, highlights the present condition of the crypto market.

It’s worth noting that the crypto market slump hasn’t occurred in a vacuum. Traditional investments like the S&P 500 index and gold have experienced notable decreases as well. According to Santiment’s latest findings, the S&P 500 dropped by 1.5%, while gold saw a more substantial decline of 3.4%.

The price of Bitcoin dipped below $67K for the first time since April 4th, resulting in over $850 million in liquidations within the past day. Simultaneously, the SP500 and gold markets have experienced declines, indicating that worries about inflation and consumer price index (CPI) are emerging across various sectors.

— Santiment (@santimentfeed) April 12, 2024

Based on data from a cryptocurrency analysis company, the drop in crypto and stock market prices can be linked to worries about consumer price inflation and rising prices in general. The Consumer Price Index (CPI) is a statistical measure that tracks changes in the cost of living for typical consumers by monitoring the average prices of a basket of goods and services.

The stock market and Bitcoin have experienced a recent drop, seemingly due to ongoing inflation that has forced the Federal Reserve (Fed) to keep interest rates elevated. This prolonged inflation has cast uncertainty over the Fed’s plans to reduce interest rates by 2024.

Inflation and economic instability can be shielded from with investments like Bitcoin and gold. Yet, increasing interest rates often make investors prefer safer options over riskier assets, including cryptocurrencies, potentially causing their prices to drop.

Bitcoin Price Quick Look

Currently, Bitcoin is priced at approximately $66,826, representing a noteworthy 5% drop over the past day.

Why Bitcoin Price Dropped Below $67,000, According To Blockchain Firm

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2024-04-13 17:11