Cryptocurrency markets are in turmoil with Bitcoin (BTC) experiencing a significant drop, hitting a new 24-hour low of $65,800. The leading digital currency is facing a potential further decline as market participants in Asia react to the sell-off. Investors are grappling with the reasons behind the sudden downturn and its implications for the near future.
Factors Behind the Bitcoin Sell-Off
Bitcoin’s value plummeted to $65,804, failing to maintain its position above the $68,000 mark due to selling pressure from profit-taking traders. This led to unusually high volatility, with a notable incident on the BitMex exchange where 400 BTC were sold in just two hours, causing a brief dip to $38,200 against USDT. The event resulted in a near $4 million loss for the investor responsible for the trade.
Market Reactions and Speculations
The market witnessed a staggering $257 million in long position liquidations over a day. Anxiety in the market has been amplified by the anticipation of the upcoming Federal Reserve meeting and disappointing inflation data. Forecasts for two-year interest rates are set to be revealed, potentially indicating upward revisions that could exacerbate the strain on financial markets.
Bitcoin currently teeters around a crucial price point of $65,830, where any further losses could signal a progressive slide towards $59,000. Despite a minor recovery indicated by breaching the 20-day EMA, there is a possibility of another downturn in the hours ahead. Meanwhile, several altcoins, including CHZ, SHIB, and DOGE, are also facing losses nearing 10%.